The last few years have been great for the fintech sector. The effects of the pandemic have propelled the need for consumers and other entities to move to cashless payments and easy access to credit. This rising demand comes with the growing need to innovate and increase competition. This also pushed other big players into digital banking and payments and led to the rise of fintech stocks to buy.
The presence of big players has pushed some companies aside and increased market volatility due to competition. However, these factors have also brought other fintech companies back to attractive levels. Combining this with underlying potential for growth and a strong portfolio of service offerings may be a chance for tech-savvy investors to grow their profits even more. Now, let’s look at three high-potential fintech stocks to buy right now.
Intuit (NASDAQ:INTU) is a financial technology platform that provides compliance, financial management, and marketing services to small businesses and consumers. Some of its popular offerings include QuickBooks, which provides payroll solutions, time-processing, and other management services. INTU also offers TurboTax, which helps consumers with their income tax preparations. The company has also recently introduced its new product, Intuit Assist, an AI-based financial assistant that targets both consumers and business and help with their financial decisions.
INTU finished its 2023 fiscal year (ending July 31, 2023) with superb results, with the latest EPS exceeding guidance by 300%. Revenue for the quarter also grew by 12% YoY, while its full-year revenue was up 13% YoY. This makes it one of those fintech stocks to buy.
With the release of its full-year financials, the company also expects to increase its 2024 revenue by 11-12%, GAAP diluted EPS by 11-15%, and non-GAAP diluted EPS by 12-14%. Its continued growth, bright expectations, and expanding ecosystem with its Intuit Assist puts it in the spotlight as one of our picks for the fintech stocks to buy.
Marqeta (NASDAQ:MQ) is a card issuer and payment solutions company that offers its products in different configurations. Its two main offerings give its clients access to independent processing tools that serve online marketplaces and digital banking under the “Powered by Marqueta” brand. Its other offering under the “Managed by Marqueta” service caters to banks and helps them with card programs, identification numbers, etc.
MQ has been capitalizing on the trend toward embedded finance with its portfolio of products that serve different aspects of the legacy banking programs for debit, credit, risk, and money management. All in all, it’s one of those fintech stocks to buy.
The company has recently acquired Power Finance, which will further boost the range of products its clients can launch. MQ also extended its partnership contract with Block, which the company expects to provide a good amount of growth for the next four years. No wonder analysts recommend Marqeta as a “Buy” rated stock.
The last company on our list is one of the giants in the fintech space. PayPal (NASDAQ:PYPL) is one of the earliest companies that introduced digital payments and helped revolutionize how consumers and businesses pay and receive payment goods and services. The company has a comprehensive portfolio of products catering to growing customer requirements like Venmo, Xoom, Paypal Zettle, and Paypal Honey. This continued growth has made PayPal and its products one of the top choices for consumers to use for their payments and financial transactions.
While it has shrunk in size compared to before the pandemic, PYPL has shown resiliency and continued to show signs of slowly recovering its financial performance. PYPL’s second-quarter net revenue grew by 7%, and its GAAP operating income increased by 48%. In fact, investors should note that the company grew its GAAP EPS by 414% on a YoY basis. However, the company’s Q22023 EPS did miss analyst estimates by -7.78%, and the stock tanked. That said, we don’t see PayPal going anywhere, and the continued revenue growth coupled with consumers’ drive to adopt a digital wallet puts PYPL as one of the fintech stocks worth checking out.
On the date of publication, Rick Orford held long positions in PYPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.