Fintech
3 Fintech Stocks to Buy on a Dip: July 2024
Money rules the world, and innovative companies created to manage money are almost always guaranteed success. Fintech, the intersection of traditional finance and technology, is a particularly winning recipe for companies.
Fintech companies are leveraging technology to offer users faster and more secure services, from payments and lending to cryptocurrencies and digital banking. With this ongoing digitization of money, the only barrier between the average fintech company and success is how far it is willing to go to provide customers and investors with the best value.
The best time to buy fintech stocks is when they have temporary price drops. But you only want to buy into a fintech company that has demonstrated a solid business model and competitive advantage in the market.
Here are three fintech stocks to consider buying during this month’s dip.
Coinbase (COIN)
Source: Primakov / Shutterstock.com
Monetary base (NASDAQ:CURRENCY) stock price has increased by more than 53% year-to-date (YTD) on the back of several pivotal events in the cryptocurrency industry.
The U.S. Securities and Exchange Commission (SEC) has finally given the green light to spot exchange-traded funds (ETFs) for Bitcoin (BTC-USD exchange rate) AND Ethereal (ETH-USD). Bitcoin has also hit a new all-time high of $73,084 and led altcoins on a crypto bull run in March.
The nature of the cryptocurrency market is such that it is cyclical, meaning it experiences ups and downs over time. This means that Coinbase is still poised for further gains as we enter the second half of the year and beyond, and is one of the best fintech stocks to watch.
Coinbase was the second largest cryptocurrency exchange in the world after Binance, until recently, and is still the largest and most successful in the United States. It has users in over 100 countries and $330 billion in assets under protection.
Club Loan (LC)
Source: LendingClub
LoanClub (London share:Barcode) surmounted analysts’ expectations for earnings per share (eps) and revenue for the first quarter of this year. EPS was 11 cents and revenue was $180.69 million versus analysts’ projection of $173.88 million.
Additionally, LendingClub’s stock price has increased by over 20% YTD. This also comes on the heels of 12 consecutive years of GAAP profitability for the San Francisco-based company. That’s an impressive performance for a company in the risky lending niche.
This strong performance is likely to continue for LendingClub, especially after a cost-cutting measure adopted last year that projected “would result in annualized compensation and benefits savings of approximately $30 million to $35 million” for the fourth quarter versus the second quarter of that year.
These factors have proved convincing to Wall Street analysts, who have overwhelmingly rated The company’s stock is a buy. LendingClub is a strong contender for the most promising fintech stocks to buy in July.
Market (MQ)
Source: Wright Studio / Shutterstock.com
Actions of Margaret (NASDAQ:MQ) Have lose 24% this year due to mixed results in the first quarter. For example, the card payment platform amassed a total processing volume of $67 billion, up 33% year-over-year, but saw a 46% and 6% decline in net revenue and gross profit, respectively.
He attributed the drop in revenue to a low withdrawal rate and an accounting change due to a contract with Cash application entered into force in July last year.
However, this change does impact the way revenue is recognized. However, it does not reflect Marqeta’s operating performance or strong growth trajectory, as demonstrated by its dramatic jump in processing volume over the past year.
Furthermore, Bank of America (London share:BAC) Cassie Chan believes that the company could expand its business even more if it introduces a credit card. This would allow it to further penetrate the market and tap into new revenue streams.
Another positive factor for Marqeta is that analysts are bullish on its stock, with 11 buy recommendations out of 17. It is certainly one of the best stocks to buy during this season’s dip.
As of the date of publication, Hope Mutie did not have (either directly or indirectly) any position in the securities mentioned in this article. The views expressed in this article are those of the author, subject to the views of InvestorPlace.com Publishing Guidelines.
As of the date of publication, the responsible editor did not hold (either directly or indirectly) any position in the securities mentioned in this article.
Hope Mutie is an enthusiastic finance and cryptocurrency writer. At InvestorPlace, she keeps her finger on the pulse of the stock and cryptocurrency markets to create insightful and informative content to help investors navigate the market with confidence.