If you’re scouting for fintech stocks to buy, now is the right time to hop in.
The fintech space is ripe with potential. Digital banks are at the forefront, transforming how we interact with our finances through easy-to-use interfaces. This shift is not just a technological one. It is about creating opportunities for investors willing to get on the board of a wave of significant development.
According to Fortune Business Insights, the global fintech market is projected to skyrocket from $294.74 billion in 2023 to an astounding $1.15 trillion by 2032, marking a 16.5% compound annual growth rate (CAGR) from 2024 to 2032. This growth shows how sizzling the fintech industry is, making it a cash cow for investors.
Investing wisely is crucial, though. Global interest rates are predicted to fall through 2024 and 2025, creating a conducive environment for fintech. High-growth companies have unique products and services and solid business strategies. Therefore, consider buying these three fintech stocks, as they stand out from the rest of the crowd.
Fintech Stocks to Buy: Visa (V)
Visa (NYSE:V) is a juggernaut in the electronic payment industry that offers fast and effective credit and debit card services for cross-border transactions. The company boasts an impressive annual growth rate of 21% and a reliable dividend yield that has grown for 15 consecutive years, making it ideal for long-term investors.
Financially, Visa is highly profitable, with a trailing twelve-month (TTM) gross profit margin of over 97.8% and a net income margin of over 50%. The company continues to impress with a 10% year-over-year (YOY) net income and revenue increase in the second quarter of 2024. Additionally, Visa has showcased commitment to its shareholders, earmarking a large $3.8 billion for share buybacks and dividends.
Visa is also actively diversifying its market presence and adjusting to new trends, like cryptocurrency. It has collaborated with different crypto firms to add these choices to its payment system. This progressive strategy puts Visa in the right place for future growth.
PayPal (PYPL)
PayPal (NASDAQ:PYPL), one of the most popular fintech stocks, has fallen from its high of nearly $300 in 2021 to around $60. Nevertheless, analysts are looking for the silver lining and expect the company to gain 23% from its current value. While competing with other giants in the technology industry, such as Apple (NASDAQ:AAPL), PayPal achieved a 9% YOY bump in its Q1 2024 revenues.
The business is already branching out, particularly into the cryptocurrency realm. Its latest offering, the PayPal USD (PYUSD-USD) stablecoin that integrates with the Solana (SOL-USD) blockchain, indicates that there may be more opportunities for creative expansion in the years ahead. With $17.7 billion in cash, cash equivalents, and investments, PayPal is well-positioned to handle these expanding horizons.
Additionally, PayPal has proved its stability by repurchasing $5.1 billion in stock in the past year. The business intends to buy back an additional $5 billion of PYPL shares this year. Investors gain from this tactic, highlighting PayPal’s resilience in a cutthroat market.
Block (SQ)
Block (NYSE:SQ) has faced its fair share of market turbulence, with its stock price falling roughly 80% from its 2021 high. However, the robust Q1 2024 results highlight the company’s resilience. Cash App, Block’s peer-to-peer payment service generated gross profit of $1.26 billion, marking a 25% increase YOY. Similarly, Square’s merchant payment solution rose by 19% to $820 million. This indicates steady growth fueled by an expanding user base and product adoption.
Additionally, Block is operating at full throttle with earnings-per-share (EPS) of 86 cents, outpacing estimates by 12 cents, and revenue soaring 19.38% to $5.96 billion. This performance can be attributed to the company’s right strategy and efficient implementation.
One of the key components of Block’s strategy is its anticipated foray into the Bitcoin (BTC-USD) business. Block diversifies its assets and improves its position in the cryptocurrency market by reinvesting 10% of its gross income from Bitcoin-related products in Bitcoin. Utilizing Cash App’s flexibility, this move positions Block for increased market share and future development.
On the date of publication, Nabeel Bukhari did not hold (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.