Fintech
3 Fintech Stocks to Buy If You’re Looking to Build Wealth
If you are looking for fintech stocks to buy, now is the right time to enter.
The fintech space is full of potential. Digital banks are at the forefront, transforming the way we interact with our finances through easy-to-use interfaces. This change is not just technological. It’s about creating opportunities for investors willing to jump on board a wave of significant development.
According to Fortune Business Insights, the global fintech market is expected to skyrocket $294.74 billion in 2023 to a staggering $1.15 trillion by 2032, marking a compound annual growth rate (CAGR) of 16.5% from 2024 to 2032. This growth shows how bubbly the fintech sector is, making it a cash cow for investors.
However, investing wisely is key. Global interest rates are expected to decline in 2024 and 2025, creating a favorable environment for fintech. High-growth companies have unique products and services and solid business strategies. Therefore, consider purchasing these three fintech stocksbecause they stand out from the rest of the crowd.
Fintech Stocks to Buy: Visa (V)
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Visa (NYSE:V) is a giant in the electronic payments industry offering 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) period gross profit margin above 97.8% and a net income margin of over 50%. The company continues to amaze with a 10% year over year (YOY) increase in net income and revenue in the second quarter of 2024. Additionally, Visa has demonstrated commitment to its shareholders by allocating a large $3.8 billion for stock buybacks and dividends.
Visa is also actively diversifying its market presence and adapting to new trends, such as cryptocurrency. He collaborated with several cryptocurrency companies to add these choices to your payment system. This progressive strategy positions Visa for future growth.
PayPal (PYPL)
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PayPal (NASDAQ:PYPL), one of the most popular fintech stockshas fallen from its high of nearly $300 in 2021 to around $60. However, analysts are looking for the bright side and expect the company to earn 23% from its current value. While competing with other tech giants, such as Apple (NASDAQ:AAPL), PayPal got a 9% increase year over year in first quarter 2024 revenues.
The business is already expanding, particularly in the cryptocurrency realm. Its latest offering, the PayPal USD (PYUSD-USD) stablecoin that intact with the Solana (SOL-USD) blockchain, indicates that there may be more opportunities for creative expansion in the years to come. With $17.7 billion in cash, cash equivalents and investments, PayPal is well positioned to manage these expanding horizons.
Additionally, PayPal has demonstrated its stability by repurchasing $5.1 billion in shares over the past year. The company plans to buy back another $5 billion in PYPL shares this year. Investors benefit from this tactic, highlighting PayPal’s resilience in a cutthroat market.
Block (QS)
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To block (NYSE:sq. m.) has faced its fair share of market turbulence, with the stock price down around 80% from its 2021 high. However, the robust First quarter 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% year-over-year increase. Similarly, Square’s commercial payment solution rose 19% to $820 million. This indicates steady growth fueled by an expanding user base and product adoption.
Additionally, Block is operating at full capacity with earnings per share (EPS) of 86 cents, beating estimates by 12 cents, and revenue growing 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 his early foray into Bitcoin (BTC-USD) Business. Block diversifies its assets and improves its position in the cryptocurrency market reinvesting 10% of your gross income from Bitcoin related products to Bitcoin. Utilizing the flexibility of Cash App, this move positions Block for greater market share and future development.
As of 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 InvestorPlace.com Guidelines for publication.
Nabeel Bukhari is an experienced research analyst and a passionate investor. His expert insights help readers deftly navigate the complexities of the financial sector, with a focus on electric vehicles (EV) and technology stocks. Nabeel holds a law degree from Bahria University.