Fintech
3 Fintech stocks to buy now: June 2024
Investors looking for high-growth investments in the financial sector should consider the top fintech stocks buy now for long term returns.
The financial sector has witnessed a significant transformation in recent years, marked by the emergence of fintech apps. From digital payments to peer-to-peer lending apps, these platforms have provided more transparent and secure means of transactions. As a result, consumer trust in these platforms is increasing, and businesses benefit from greater convenience and better connectivity with customers.
The rise of fintech apps has created a shift towards a largely cashless society, and experts predict almost 91% of transactions in the United States it will be online this year. In line with this trend, the global fintech market is expected to surpass the valuation of $1,152 billion by 2032.
The high growth potential of fintech apps serves as a boon for frontline businesses. For investors, this optimistic outlook represents a great opportunity to support the industry’s biggest names.
Affirm (AFRM)
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It’s been a bumpy ride for To assert (NASDAQ:AFRM) in recent years, but several signs point to better days ahead.
Having been an early mover in the buy now, pay later (BNPL) space, the company saw its shares rise during the pandemic-induced lockdowns. However, a decline in digital spending and inflationary headwinds soon took center stage and weakened Affirm’s growth. In fiscal 2023, the company revenues grew by only 18% versus a peak of 55% in 2022 year-over-year (YOY).
However, the company’s recent developments give investors good reasons to remain bullish on this stock. The company’s shares gained ground last week on news that Affirm’s BNPL loans will now be available Apples (NASDAQ:AAPL)Apple Pay. AFRM stock was up 8% after the news.
Now, from a holistic point of view, this partnership will not have any short-term impact on its finances, but it will definitely open doors for Affirm in the long term. The integration with Apple Pay will allow the company to expand geographically and expand into additional service offerings.
Additionally, things are looking up for Affirm on the numbers front as well. After a slow 2023, the company’s revenue is up 40% this year. So is the compound annual growth rate (CAGR). expected at 20% over the next five years. This is a rosy prospect that is worth investing in.
Affirm may not be at its full potential right now. However, I think there are several tailwinds that make this one of the best fintech stocks to buy now for long-term returns.
Block (QS)
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Another stock worth investing in this month is To block (NYSE:m2) — formerly known as Square. The company was no stranger to post-pandemic decline and has struggled with profitability in recent years. Block’s stock is down 78% from its 2021 highs. However, the company shines in one area that will fuel its growth in the coming years: digital payments.
Block has certainly expanded its offerings since the days of Square, but it is still best known for its core products, Square and Cash App. Payment apps continue to generate revenue for the company with its Cash App segment seeing a 49% increase in gross profit YOY in the first quarter this year.
The company also invests heavily in this ecosystem and is constantly adding new features to its platform. According to Block management, it has barely scratched the surface of a $130 billion total addressable market (TAM) in digital payments. This suggests endless growth opportunities for the company in this space.
Block’s current price represents a great entry point for investors looking to capitalize on the best fintech stocks to buy now for future returns.
Visa (V)
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When it comes to fintech platforms, Visa (NYSE:V) is definitely at the top of my list. After a pandemic-related decline in 2021, the stock has been on the rise ever since revenues of 10% on an annual basis. This spike can be attributed to several trends.
First, Visa’s status as the world’s largest card network means it has a lot to gain from an increasingly cashless society. In 2023, the company succeeded $12.3 trillion in payment volume. This number will only grow as more and more people transition to digital payments.
Second, Visa will benefit from increased consumer spending. As global economies grow, increased spending will help the company maximize revenue. Visa is a high margin business and makes money on every small transaction. Its global presence and extensive technology infrastructure across all platforms represents a tremendous revenue growth opportunity.
Additionally, the company is actively expanding its ecosystem with the launch of numerous initiatives. This includes a partnership with Amazon (NASDAQ:AMZN) TO rationalize services for cloud-native institutions and a collaboration with Dash Solutions to improve the efficiency of instant payments.
Visa stock trades at a high multiple and is in no way a cheap buy. However, its strong market position in the digitally-driven payments landscape makes it one of the best fintech stocks to buy now.
As of the date of publication, Divya Premkumar 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.
Divya has a background in finance and accounting and has worked in FP&A roles at Fortune 500 companies. She is an avid reader and enjoys writing on a variety of topics including stocks, cryptocurrencies, blockchain, and global politics.