Remitly Global is not among the top five stocks in its industry group, and more funds shed the stock throughout 2024. Yet, the payment services provider is among the best stocks to watch, with its chart one of the best in the group.
The company is today's selection for IBD 50 Stocks To Watch, with the stock close to forming a three-weeks-tight pattern with a 23.11 buy point. The pattern acts a resting place after shares ran up more than 50% from a cup-with-handle breakout in late October. A move above 23.11 would signal an opportunity for those who already own Remitly to add shares, or for others to make an initial purchase.
IBD MarketSurge shows the number of funds holding Remitly dwindled from 398 at the end of last March to 383 in June, 328 in September and 311 in December. But that trend could be reversing, based on more current fund data.
Remitly has an A Accumulation/Distribution Rating and up/down volume ratio of 1.7. Both are bullish gauges of institutional-caliber buying in the past few months. No doubt, the stock's November rally drew fund managers back.
Best Stocks To Watch: Remitly Raises Forecast
The breakout occurred after Remitly blew past analysts' estimates with a 39% jump in revenue for the third quarter and posted a non-GAAP profit of 20 cents a share, according to FactSet. The strong performance led management to raise its 2024 revenue and adjusted EBITDA forecast. Shares shot up 18% after the Oct. 30 report.
The Seattle-based company posted losses for much of 2022 and struggled to be profitable in 2023. Quarterly revenue growth, however, ranged from 31% to 50% since 2022, FactSet data shows.
Analysts' consensus estimate is for a 56% increase in 2025 earnings per share and 24% increase in 2025 revenue.
Remitly specializes in helping people — many of them immigrants — send money abroad. It serves more than 7 million active customers, with more than $50 billion in transfers to some 170 countries.
