Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

The 3 Best Fintech Stocks To Buy Now

By MarketBeat.com (Sean Sechler )Stock MarketsNov 20, 2020 06:54AM ET
www.investing.com/analysis/the-3-best-fintech-stocks-to-buy-now-200545294
The 3 Best Fintech Stocks To Buy Now
By MarketBeat.com (Sean Sechler )   |  Nov 20, 2020 06:54AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

There’s never been a better time to explore investment opportunities with companies that offer financial technology. Also known as fintech companies, these businesses are revolutionizing the way that the world handles financial transactions. We’ve been steadily heading towards using digital payments technology exclusively over the last decade, and there are several trends this year that has accelerated its widespread adaptation.

It’s hard to imagine that things like contactless payments, e-commerce, and digital transactions will be going away any time soon. That’s why investors should be looking at the best fintech stocks to add to their portfolios to capitalize on growing trends in the business world. Below, we’ve put together a list of the 3 best fintech stocks to buy now to offer valuable insight into which of these groundbreaking businesses should continue to experience sustained growth going forward.

Fiserv

If you are interested in adding a diversified fintech company to your portfolio, Fiserv (NASDAQ:FISV) is one of the premier options to consider. It’s a leading global provider of financial technology and services for merchants, banks, and capital market firms and has proven to be a resilient business throughout the pandemic. Fiserv offers its clients services such as electronic payment processing, internet banking, and account processing services. Most of this company’s revenue is generated from recurring transaction-based fees from contracts that typically have terms ranging from three to five years. That means that the company’s earnings are relatively stable.

Fiserv notably acquired First Data back in 2019 and should start seeing synergies from the merger sooner rather than later. Q3 earnings for the company were strong, as it reported revenue growth of 21% year-over-year and 79% year-to-date. Fiserv also raised its full-year 2020 guidance and EPS outlook, signaling to investors that it should have another strong quarter in Q4. The stock recently received a boost thanks to an announcement that the company has approved a share buyback program of 60 million shares. While share buyback programs can have their downsides, they generally signify that the company views their stock as undervalued at current market prices and can lead to boosted share prices in the short-term. The stock hasn’t rallied this year like other companies in the space due to lower consumer activity related to the pandemic, which means it trades at a reasonable valuation relative to its peers.

Paypal

Many investors consider PayPal (NASDAQ:PYPL) to be the gold standard in fintech. It’s a company that was initially spun-off from Ebay (NASDAQ:EBAY) and offers an innovative way to handle digital and mobile payments for consumers and merchants around the world. It earns the vast majority of its revenue by charging fees for each completed payment transaction, which is one of the big reasons why it’s worth a look at this time. Payment volumes have been rapidly accelerating, and the company reported total payment volume of $247 billion in Q3, an increase of 38% year-over-year.

With over 361 million active users globally, it’s clear that Paypal has a massive footprint worldwide. One of the big competitive advantages that this company has is its strong international presence, with over 100 million users located outside of the United States. Paypal also continues to make smart investments in new fintech companies including the recent acquisition of online shopping tool Honey Science Corp for $4 billion in cash. Paypal also recently announced that it is launching a new service that allows its customers to buy, hold, and sell cryptocurrency directly from their Paypal accounts, another move that could reward shareholders in the long-term. The stock is up over 70% year-to-date but has pulled back roughly 11% from its highs, providing investors with an attractive entry point at this time.

StoneCo

Last on our list is a lesser-known fintech company based in Brazil that is fulfilling a major need for financial technology solutions in an emerging market. StoneCo (NASDAQ:STNE) has developed a cloud-based technology platform that allows businesses to conduct electronic commerce in-store, online, and on mobile channels. Businesses in Brazil will continue to digitize over the next decade and a company like StoneCo could play a crucial role in helping to make that happen. American Express (NYSE:AXP) believes that roughly 85% of transactions in Latin America are still handled with cash, which tells us that a company like StoneCo has a massive addressable market.

StoneCo has seen strong growth this year and recently delivered convincing Q3 earnings which saw total payment volume increase by 114% year-over-year. The company also reported Q3 revenue and net income increases of 39% and 43% year-over-year, respectively. These are strong numbers given the dire economic circumstances in Brazil, confirming that this company is executing at a high level. It’s also worth noting that Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) has a stake in the business. While this stock is trading at a premium valuation and is up over 60% year-to-date, the huge opportunity it has to permanently change the way payments are handled in Brazil make it one of the more intriguing fintech companies to own.

Original Post

The 3 Best Fintech Stocks To Buy Now
 

Related Articles

The 3 Best Fintech Stocks To Buy Now

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
RF RF
RF RF Dec 15, 2021 6:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Any update coning on this article any time soon? Or that’s all folks?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email