3 Top-Rated Fintech Stocks Wall Street Analysts Are Loving Now: January 2024


  • These top-rated fintech stocks have been beneficial for long-term investors.
  • Bill Holdings (BILL): The company is generating high revenue growth while trimming its losses.
  • Intuit (INTU): The company has many financial software solutions that consumers and businesses use frequently.
  • Mastercard (MA): Expanding profit margins are improving the company’s valuation and long-term potential.
top-rated fintech stocks - 3 Top-Rated Fintech Stocks Wall Street Analysts Are Loving Now: January 2024

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Fintech companies make it easier for people and companies to manage their money and financial transactions. Investors can benefit from the growing demand for financial technology services by investing in various fintech stocks.

One of the major hurdles that stops people from investing in stocks is the amount of research required. Investors have to stay on top of several stocks in the sector and assess which ones offer better opportunities for long-term investors.

Luckily, investors can see what Wall Street analysts say about stocks to streamline their research. The analysts have glowing reviews of these top-rated fintech stocks.

Bill Holdings (BILL)

The Bill.com logo in front of a building representing BILL stock.
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Bill (NYSE:BILL) is a financial software company that makes it easier for companies to manage invoices and expenses. The firm also helps companies access credit lines and control budgets within a single platform.

Wall Street analysts are bullish about the stock and predict a 20% upside from the current price. Out of 23 analysts, 14 of them rated Bill as a “Buy” while nine rated the stock as a “Hold.”

Bill has tremendous top-line growth and has made good progress with minimizing its net losses. Bill started fiscal 2024 with 33% year-over-year revenue growth in the first quarter. Over 471,200 businesses used Bill’s solutions at the end of the first quarter. The company processed 25 million transactions during that period which marks a 26% year-over-year increase.

Although shares are down by 30% over the past year, the stock has surged by 92% in the past five years. The stock is well removed from its all-time high, but a switch to profitability can send the stock soaring higher.

Intuit (INTU)

Person holding cellphone with logo of US financial software company Intuit Inc. (INTU) on screen in front of business webpage. Focus on phone display. Unmodified photo.
Source: T. Schneider / Shutterstock.com

Intuit (NASDAQ:INTU) is a large-cap fintech company that offers financial software for businesses. The company’s popular offerings include QuickBooks, Mint, Credit Karma, MailChimp, and others.

Shares trade at a 37x forward P/E ratio and have rewarded long-term investors. INTU stock has gained 57% over the past year and is up by 186% in the past five years. Intuit also started fiscal 2024 strong, increasing revenue by 15% year-over-year

Credit Karma reported a 5% year-over-year decline in revenue due to a slowdown in personal loans and other interest-bearing products. But other segments like Consumer Group and ProTax Group delivered year-over-year revenue growth above 20%.

Intuit is aiming for 11%-12% revenue growth throughout fiscal 2024. GAAP operating income should increase by 15%-18% based on guidance. Intuit has a line-up of stellar fintech products. Some acquisitions like MailChimp offer good synergy with the company’s financial software.

The company also offers a low 0.60% dividend yield but does a good job of raising it each year. Last year, the quarterly dividend went from $0.78 per share to $0.90 per share, a 15.4% year-over-year increase.

Mastercard (MA)

Close up of a pile of mastercard credit load debit bank cards.
Source: David Cardinez / Shutterstock.com

Mastercard (NYSE:MA) is a leading credit and debit card issuer that has a $400 billion market cap. Wall Street analysts have an average price target of $466.05 which implies a 9% upside. The stock received 22 “Buy” ratings and 1 “Hold” rating while receiving an overall “Strong Buy” rating. The highest price target is $510 which implies a 19% gain.

Mastercard stock recorded a slow year with only a 14% gain over that period. However, the stock has more than doubled over the past five years and trades at a reasonable 30x P/E ratio. The stock offers a 0.60% dividend yield with a good growth rate over the years. Mastercard hiked its quarterly dividend from $0.57 to $0.66 per share this year which represents a 15.8% growth rate.

Mastercard can reward long-term dividend investors who aren’t looking for high cash flow right now. The company reported 14% year-over-year revenue growth in the third quarter of 2023 and a 28% year-over-year increase in GAAP net income. 

Mastercard’s net profit margins are very healthy and almost touched 50% in the third quarter. The stock looks like a long-term winner due to how deeply its credit and debit cards are integrated into the global economy.

On the date of publication, Marc Guberti did not have (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.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

Article printed from InvestorPlace Media, https://investorplace.com/2024/01/3-top-rated-fintech-stocks-wall-street-analysts-are-loving-now-january-2024/.

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