In the financial sector’s constantly evolving landscape, fintech stocks have undergone a turbulent journey. Despite a few hiccups along the way, the digital metamorphosis of the financial framework continues to whet the appetite of investors looking for the top fintech stocks.
The industry’s pioneers have effectively harnessed the burgeoning momentum, delivering cutting-edge services tailored to both individuals and businesses alike.
As we assess the downturn in fintech growth stocks, it’s perhaps an ideal opportunity for investors to scoop up multiple undervalued fintech stocks at attractive prices.
It’s imperative to have strong foresight, so without further ado, it’s important to acknowledge that investing in fintech stocks could be a cornerstone for robust returns in the future.
| SQ | Block | $61.53 |
| SOFI | SoFi | $5.22 |
| TWLO | Twilio | $61.68 |
Block (SQ)
Block (NYSE:SQ) has evolved into a fintech dynamo serving as a vital financial lifeline for millions of underbanked and unbanked consumers.
It flaunts a potent and unique blend of payment processing and financial inclusion, effectively meeting the everyday needs of a growing customer base.
However, its stock has been punished severely, with it shedding more than 30% in value in the past year. Its financials reveal a telling snapshot of its resilience. Its active Cash App card users improved to 20 million, representing a 34% YOY leap.
In comparison, its gross profits of $1.71 billion represented a 30% bump YOY, with an eye-catching 89% increase in EBITDA to $368 million.
Analysts are incredibly optimistic about its trajectory, setting an average price target of $89.7, a handsome 53% upside from current price levels. As Block continues becoming a pioneer in the fintech realm, its future looks promising.
SoFi (SOFI)
Fintech heavyweight SoFi (NASDAQ:SOFI) showcased its financial prowess in its first-quarter earnings, comfortably analyst estimates for both revenue and EPS.
It reported revenues of $460.2 million, outperforming the projected $441 million. At the same time, its loss per share came in at a narrower five cents, beating the expected seven cents loss in the prior-year quarter.
During the earnings call, SoFi underscored its financial strength, boasting a whopping $10 billion in deposits, $3 billion of equity capital, and a massive $8.6 billion in warehouse capacity.
These robust metrics effectively fortify SoFi’s position despite a challenging banking landscape, contributing to a long-term positive outlook for the stock.
Like Block, the stock boasts more than 50% upside potential from current price levels. Its hedge fund holdings in the past quarter increased by more than 1.1 million, suggesting that smart money remains confident over its prospects, despite the recent banking crisis.
Twilio (TWLO)
Twilio (NYSE:TWLO) has evolved into a transformative player in the client communication sphere, effectively carving out a substantial presence in the fintech landscape.
Its APIs empower fintech enterprises to embed messaging, voice, and video into their applications, streamlining and securing customer interactions.
Since its stock market debut several years ago, Twilio has been marching forth on a growth-first trajectory, effectively keeping profitability at bay.
However, sensing stabilization in its growth rates, its management has strategically balanced growth and profitability, ensuring enduring success and value creation.
Its first-quarter results for 2023 report stellar earnings per share of 47 cents, effectively doubling analysts’ of 21 cents.
You have its reported sales of $1.01 billion, slightly ahead of its forecast of $1 billion. This positive performance bodes well for Twilio’s strategic shift and future prospects, with its stock down near multi-year lows.
On the publication date, Muslim Farooque did not have (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 the InvestorPlace.com Publishing Guidelines
