Despite data security concerns, the fintech industry is expected to grow due to the rapid adoption of advanced technological solutions and the rising demand for digital transactions. Hence, Wall Street analysts believe fintech stocks SelectQuote (SLQT), GoHealth (GOCO), and Mogo (MOGO) have plenty of upside remaining. Read on.Even though data security breaches and increasing cyberattacks remain a concern for the fintech industry, the surge in digital financial transactions makes its prospects bright. Investors’ optimism about fintech stocks is evidenced by the Global X FinTech ETF’s (FINX) 8.4% gains over the past month, versus the SPDR S&P 500 Trust ETF’s (SPY) 3.6% returns.
Furthermore, the Federal Reserve could raise interest rates as early as 2023, and recently indicated its willingness to reduce asset purchases before the end of the year, which should help Fintech companies expand their profit margins. In addition, the Fintech industry holds immense growth potential over the long run due to the increasing adoption of advanced technologies and innovative solutions. According to an The ExpressWire report, the fintech market is expected to grow at an 8.6% CAGR between 2021 - 2024.
Therefore, we think it could be wise to add fintech stocks SelectQuote, Inc. (SLQT), GoHealth, Inc. (GOCO), and Mogo Inc. (MOGO) to one’s r watchlist. Wall Street analysts expect them to rally significantly in price in the near term.