Let me say this clearly: fintech is here to stay and will change our lives. With the rise of cashless transactions, digital payments, and Buy Now, Pay Later, a huge transition is happening in the finance world. 2023 was also a year when people started to lose trust in traditional banks and were looking for other options to put their money into. This backdrop has led to this list of fintech stocks to buy.
This is where several fintech companies won. The coming year will be about innovation, technology, and digital transactions. With that in mind, now is the right time to invest in fintech stocks that will be able to withstand competition in 2024.
Here are the top fintech stocks to buy.
Visa (V)
One of my favorite fintech stocks in 2024 is Visa (NYSE:V). The company has a solid global presence, caters to over 100 merchants, and thrives despite uncertain market conditions. The financial stock has been a big winner of 2023 and is exchanging hands for $259 right now, up 25% year to date and very close to the 52-week high of $263. It has generated over 100% returns in the past five years, and the momentum will not stop anytime soon.
One big reason to invest in the stock is that the company has low operating costs and consistent revenue. It makes money whenever its card is swiped, and as we transition towards cashless payments, Visa is set to gain. It charges a fee on every transaction, which can lead to a huge amount of money. The company also offers other value-added services like risk management, advisory, and acceptance solutions, which generate revenue.
Another reason to invest in Visa is the strong financials. The company reported a revenue of $32.7 billion for 2023, up 11%, and a net income of $8.28 per share. A striking feature of the income statement is the profit it makes. The company has made $21 billion in operating income, which is a huge margin, and this shows that it has enough liquidity to keep rewarding the shareholders. Visa is steadily producing free cash flow, which helps repurchase the company stock.
One of the top dividend stocks, Visa, enjoys a yield of 0.80% and has announced a quarterly dividend of $0.52. Yes, the stock isn’t cheap, but it will only move upward in 2024, and if you wait for it to drop, you could end up waiting forever.
SoFi Technologies (SOFI)
Another stellar fintech stock to buy is SoFi Technologies (NASDAQ:SOFI). The company did suffer over the past two years when SOFI stock went from $25 in Jan 2021 to $9.94 today. However, this dip is a solid chance to add the stock to your portfolio. SOFI is a multi-bagger stock to buy and hold for long-term gains.
It was once known for its lending operations but has now become a one-stop shop for everything money. Its financial services segment has grown by 141% in the recent quarter and is very close to reporting profitability. It is now offering everything one would want from a bank- checking accounts, investments, credit cards, and loans. As I’ve mentioned in my previous coverage of SOFI, the company is set to gain from the resumption of student loan repayments, and this will lead to a rise in the demand for personal loans.
In the third quarter, it added 717,000 members, which took the total number of members to 6.96 million. If it continues with the same growth rate, it will end the year with over 7.5 million members. The management aims to add about 1 million members in each quarter throughout 2024, and this will mean massive growth for the company. Its fourth-quarter report will be interesting and could carry good news.
The management aims to deliver a profit in the coming quarter, which could be the beginning of SoFi’s success story. Buying the stock below $10 is a smart move that can double your money in 2024. If you hold the stock throughout the coming year, you could end the year with a significant gain.
PayPal (PYPL)
There is a mixed sentiment about PayPal (NASDAQ:PYPL), but I think it is too soon to write it off. A well-known player in the industry, the company will continue to benefit from the trend of digital payments. The fintech giant is benefitting from the growing popularity of online shopping. It caters to individuals and businesses globally.
Trading at $63 today, the stock is down 15% year to date and looks undervalued to me. Buy the stock now for strong long-term gains. It is still trading lower than the 52-week high of $88 and significantly lower than the all-time high of $308 it hit in 2021.
In the third quarter, the company saw a revenue rise of 8%, and it is expected that the fourth quarter could see lower revenue growth. Its EPS stood at $1.30 per share, and the revenue hit $7.4 billion, exceeding projections. This shows that the company has a solid market presence and can continue to grow even during high inflation.
PayPal has recently ventured into the blockchain segment and now offers services to help buy, hold, and sell cryptocurrencies. It has launched a stablecoin, PayPal USD (PY-USD), which shows that the company is ready for the future of digital finance.
The company has a strong history of handling payments safely and is a trusted name in the industry. PYPL stock has dropped low, but this doesn’t mean it will stay there. This is one stock to buy now and watch it grow in 2024.
On the date of publication, Vandita Jadeja 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 the InvestorPlace.com Publishing Guidelines.
