Fintech
3 Fintech Stocks to Buy on a Dip: June 2024
Are you thinking of buying low? Here are three promising fintech picks for this month
Source: Wright Studio / Shutterstock.com
If you are passionate about fintech and are waiting for the perfect buying opportunity, here are the best fintech stocks to buy on the decline this June.
Fintech companies have been successful because they complement the traditional financial system, which is solid but rather slow. Before fintech went mainstream, you could expect to receive your money in days, thanks to the bureaucracy inherent in TradFi.
Now, thanks to fintech, businesses and individuals have a better chance of getting their payments processed in a more timely manner and without being stuck for days. This means that fintech stocks (i.e. publicly traded fintech companies) are not going out of style any time soon, and fintech investors are sure to reap nice dividends in the coming years.
Here are our top fintech stock picks to buy during this season’s dip.
StoneCo Ltd (STNE)
Source: T. Schneider / Shutterstock.com
StoneCo (NASDAQ:STNE) is a fintech company that provides end-to-end payment solutions to small and medium-sized businesses in Brazil.
The company was the first non-banking company to offer payment solutions for merchants in-house. His shares became more important than ever when Warren Buffet Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) purchased a stake in the company in 2018 (first get out of that position in the month of February).
StoneCo shares have lose more than 35% year to date. This is thanks in part to mixed first quarter results and the resignation of co-founder André Street.
However, StoneCo has positive elements that make it an attractive proposition for a fintech stock to buy on a dip. For example, lower short-term interest rates in Brazil make it a cost-effective growth opportunity for investors.
Investors will also be happy to know this JPMorgan updated StoneCo shares from Neutral to Overweight this month, stating “attractive EPS potential.”
Lemonade Inc (LMND)
Source: Stephanie L Sanchez / Shutterstock.com
Lemonade (NYSE:LMND) is a renters, homeowners, term life, auto, and pet insurance company. The company, launched in 2015, differentiates itself from its competitors by using artificial intelligence in nearly all of its processes. It also caters to younger generations and invests in social impact as part of its appeal.
Even though the company has seen revenue decline up 25% for the first quarter compared to the same period last year, its stock price has been stuck in neutral for most of this year and is down 20% compared to the previous year.
However, if the future of insurance is AI, then Lemonade will be at the forefront of this change. And with that, there will be an appreciation in its stock price.
The company’s massive bet on artificial intelligence could pay off in the near future, as evidenced by the fact that its shares rose 8% when CEO Daniel Schreiber appeared on CNBC to talk about why the insurance industry is ripe for the AI revolution.
As a company, Lemonade has interesting days ahead. It could be one of the most promising fintech stocks to buy in this downturn.
Adyen (ADYEY)
Source: www.hollandfoto.net / Shutterstock.com
Adyen (OTCMKTS:GOODBYE) the actions are down 30% year-over-year (YOY) and plunged more than 15% in April after the company reported weaker-than-expected first-quarter sales.
The payment processor reported that net revenue rose 21% to 438 million euros ($469.3 million) in the first three months of the year, slightly missing analysts’ expectations. ADYEY shares have yet to recover from their April plunge.
But Adyen’s recent outlook shouldn’t dampen investor sentiment. That’s because ADYEY stock is up 83% since his epic collapse last year. During that time, it lost a third of its valuation during a series of “apocalyptic” sales. This demonstrates the ability of Dutch society to bounce back even after a devastating period.
Looking further ahead, the question is whether Adyen can sustain this resilience, and analysts think so. Outside 28 analysts17 rate Adyen a Buy, with three and eight giving it an Overweight and Sell rating, respectively. Adyen is definitely worth considering as one of the best fintech stocks to buy on the dip for your portfolio this June.
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 Guidelines for publication.
Hope Mutie is an enthusiastic writer about finance and cryptocurrencies. At InvestorPlace, she keeps her finger on the pulse of the stock and cryptocurrency markets to create in-depth, information-rich content to help investors navigate the market with confidence.