In the last few years, technological advancements in the fintech sector have put several fintech stocks to buy in the limelight.
For the uninitiated, fintech refers to companies that offer technology solutions for money management. That includes mobile banking or trading apps, e-wallets and peer-to-peer payment platforms.
And while fintech’s relevance has surged, the last few years have been challenging for companies in the space. Macroeconomic uncertainties and a decline in fintech funding have caused many to struggle to stay afloat. As a result, many fintech stocks are trending lower, with some at 52-week lows.
Nevertheless, the future of fintech remains optimistic. In an increasingly cashless society, these companies can shape consumer financial habits and transform the financial ecosystem. The data reflects this positive sentiment with the fintech market expected to grow to $882 billion by 2030.
This means investors willing to weather the short-term headwinds have the opportunity to capitalize on the long-term gains. As such, companies with high growth potential trading near 52-week lows offer a great entry point.
DigiAsia (FAAS)
DigiAsia (NASDAQ:FAAS) is a fintech-as-a-service (FaaS) platform that offers a range of financial solutions. These include digital wallets, supply chain payments and a banking-as-a-service (BaaS) platform. The company’s premise is to support the financial needs of its partners with low-cost mass-market products.
Its shares may be trading lower but its strong market position offers tremendous growth potential. Since its inception, the company has forged several strategic partnerships to drive its expansion. Some of its notable partners include Mastercard (NYSE:MA) in Jakarta, Western Union (NYSE:WU) and Starbucks (NASDAQ:SBUX). DigiAsia also signed a deal with DBS Bank (OTCMKTS:DBSDY), the largest bank in South East Asia to disburse merchant loans through its platform.
In more recent news, the company secured the allocation of an initial shipment of 5,120 Nvidia (NASDAQ:NVDA) H200 GPUs. As part of the deal, DigiAsia will be responsible for deploying and developing advanced AI solutions in Southeast Asia, the Middle East and India. The partnership will help enhance the efficiency of DigiAsia’s infrastructure while capitalizing on a $300 billion financial services market.
With an exciting deal in the pipeline and shares hovering at the 52-week low, FAASstands out as one of the best fintech stocks to buy. The company provides investors with the perfect blend of valuation, innovation and stability in the fintech sector.
DLocal (DLO)
DLocal (NASDAQ:DLO) is a fintech play that certainly deserves more attention. The Latin American-based fintech platform serves as a bridge between global businesses and emerging markets. Through the help of dLocal’s cross-border payments platform, businesses can transact in countries with their own payment ecosystems. The platform provides access to 40 markets across Latin America, South East Asia and Africa.
Fundamentally speaking, dLocal remains a solid play. In its recent earnings, the company posted revenue at $184 million, up 34% year-over-year (YoY). This was fueled by a 49% rise in total payment volumes (TPV). The TPV growth certainly speaks to the company’s ability to remain competitive and provide value through its solutions. However, shares dived following earnings on weaker-than-expected results.
Nevertheless, DLO stock remains an appealing buy for several reasons. One, the company’s solution makes it significantly easier for global businesses to sell in emerging markets. Second, it has established a presence amongst high-profile customers including Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT) and Shopify (NYSE:SHOP). Third, DLO stock is down 54% this year and trading near its 52-week low. This makes it one of the best fintech stocks to buy for bargain-hunting investors seeking long-term returns.
SoFi Technologies (SOFI)
Despite a steep drop in its price,, SoFi Technologies (NASDAQ:SOFI) remains an attractive option for investors seeking a high-growth name. The digital banking platform boasts a loyal customer base with its easy-to-use app that caters to a young audience. This enabled SoFi to scale its business and generate attractive returns. The numbers reflect its success story.
In the first quarter, revenue was up $581 million, a 26% increase YoY. This was fueled by a 54% rise in tech platforms and financial services revenue. Adjusted EBITDA was up 91%, while new member additions grew 44% from the prior year. Additionally, the number of products used by its customers also grew by 38% to 11.8 million. And while the numbers are certainly impressive, SOFI stock plunged on a weak second-quarter outlook.
While slowing growth levels are certainly a red flag, SoFi’s long-term prospects remain strong. The company’s diversified business and innovative technology provide a steady runway for growth. Moreover, the stock is attractively priced and hit its 52-week low earlier this month.
Investors willing to weather the short-term headwinds for long-term gains will find SOFI one of the top fintech stocks to buy this month.
On the date of publication, Divya Premkumar did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor held a LONG position in SBUX.