Fintech
Fortune fintech: 3 undervalued stocks that offer life-changing benefits
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The fintech sector is full of companies that continue to play a significant role in how we bank, transact and invest. Amid the turmoil surrounding these companies, the largest industrial players remain the most undervalued fintech stocks buy.
It becomes extremely easy to overlook established players in the fintech sector that possess extraordinary long-term potential. This is because they have grown to such an extent that investors often believe they have “missed the opportunity.” However, this couldn’t be further from the truth given the tailwinds that will continue to drive growth over the next decade. These attractive investment opportunities can offer life-changing returns to those who stay the course.
Now, here are the best undervalued fintech stocks to buy in 2024 and beyond!
Mastercard (MA)
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Mastercard (NYSE:BUT) It should need no introduction when considering the most undervalued fintech stocks. They are one of the most important brands in the global payments industry and will benefit enormously from the growth of cross-border payments.
Mastercard’s established position in payments provides a solid foundation for growth. With an extensive network spanning multiple countries and partnerships with leading financial institutions, Mastercard enjoys a significant competitive advantage. If you’re reading this article right now, there’s a good chance you have a Mastercard credit card. This shows how powerful their brand is and how far their reach extends across the globe. The company continued its momentum in the first quarter of 2024, after achieving record results in fiscal 2023. In Q1 FY24, revenue increased 10% year-over-year to $6.35 billion, with earnings per share up 30% year-over-year to $3.22 per share. Furthermore, cross-border transactions grew by 18% compared to the previous year. As Mastercard continues to promote its digital payments platform, investors should certainly keep it on their radar in 2024.
Fiserv (FI)
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Fiserv (NYSE:FI) it just might be one of the most undervalued fintech stocks to buy in 2024. The company operates behind the scenes and is the technological backbone of banks and merchants.
Fiserv is unique in that its technology has broad appeal. They provide a robust suite of solutions that cater to banks, credit unions, investment firms and other financial institutions. This diversification not only mitigates risks but also allows the company to take advantage of emerging trends in various segments of the financial industry. Additionally, Fiserv’s acquisitions and strategic partnerships strengthen its market position and expand its revenue growth capabilities. In theirs latest quarterly results, Fiserv grew its top-line revenue 7% year-over-year to $4.88 billion. EPS skyrocketed 39% year over year to $1.24 per share, with operating margin remaining strong at 24.2%. Management forecast revenue growth in the mid-teens in 2024 and raised fiscal 2024 EPS guidance to between $8.60 and $8.75 per share. This makes Fiserv one of the most undervalued fintech stocks to snap up in May.
American Express (AXP)
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American Express (NYSE:AXP) is a premium card issuer and payments network known for its exceptional customer service and loyalty programs. While traditionally targeting affluent customers, American Express has broadened its reach to younger generations.
The last 3 years have been great for American Express. After the company’s pandemic collapse in 2020, the post-pandemic recovery has remained strong. American Express stays ahead of the latest technology trends and continues to make key investments in artificial intelligence, machine learning and data analytics to improve customer experiences, mitigate risks and identify new business opportunities. However, management’s focus has been on the Millenial and Gen Z segments. This has made a huge contribution to the company’s growth in 2023, as well as benefiting from higher interest rates in the US economy. But their 60% year-over-year growth in customer accounts for this segment in first quarter of 2024 it’s a telltale sign of what’s to come. With management maintaining double-digit revenue and EPS growth into 2024, AXP stock is one of the best undervalued fintech stocks to buy for life-changing returns.
As of the date of publication, Terel Miles 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.
Terel Miles is a contributing writer for InvestorPlace.com, with over seven years of experience investing in the financial markets.