Fintech stocks in 2024 are attracting plenty of attention in the financial markets. Driven by rapid technological advancements, the fintech sector is revolutionizing. Major financial institutions are now harnessing the power of fintech, integrating groundbreaking solutions into their operations. This trend underscores a transformative phase in finance. The trend marries traditional models with cutting-edge technology to redefine service delivery and customer interaction. This led us to curate this list of the best fintech stocks to invest in this year.
Fintech boasts a market value of $257.26 billion in 2022. The sector’s innovative approaches and untapped potential in the fast-paced financial landscape redefine traditional banking and monetary transactions. Projections are even more optimistic. Forecasts suggest a surge to $882.3 billion by 2030, marking a robust compound annual growth rate (CAGR) of 17% from 2023 to 2030.
This exponential growth is fueled by technological innovation and strategic adoption, marking a golden opportunity for investors. Engaging with the fintech sector now promises substantial returns, placing savvy investors at the heart of a financial revolution.
Visa (V)
In the dynamic fintech sector, Visa (NYSE:V) consistently emerges as a luminary. The stock climbed a remarkable 19.5% over the past year. This upswing mirrors an uptick in consumer spending. The uptick translates to more transactions and heftier purchase sums, solidifying Visa’s role as a pivotal economic indicator.
Visa’s recent earnings reveal robust growth, with a 9% increase in annual revenue, hitting $8.63 billion. There was also and a significant 17% jump in GAAP net income. Strategic share buybacks amplified its earnings-per-share by an impressive 20%. Beyond financials, Visa’s acquisition of Pismo, a leader in cloud-native issuer processing, marks a pivotal move. Furthermore, integration empowers Visa to deliver extensive core banking and card-issuer processing services through advanced cloud-native APIs. This move diversifies and strengthens its market stance.
Furthermore, Visa’s commitment to shareholder value shines, demonstrated by 15 years of consistent dividend growth, yielding 0.8%. TipRanks analysts echo this sentiment, assigning Visa as a “Strong Buy,” foreseeing a whopping 10.45% upside.
Global Payments (GPN)
Global Payments (NYSE:GPN) stands out in the fintech market. The company has a notable 15% increase in its share price over the past year. The company’s recent alliance with Commerzbank was a move signaling its ambition to cast a wider net globally. Additionally, the appointment of Shannon Johnston as Chief Information Officer reflects its strategic approach to growth and a strong commitment to technological leadership, marking significant strides in its global expansion and innovation endeavors.
Financially, GPN has set impressive benchmarks, with revenues climbing 8.3% year-over-year to reach $2.48 billion and business income soaring by 44.4% to $558 million. The company’s adeptness in navigating the competitive landscape is further mirrored in its net income boost of 24.6%, amassing $361.83 million.
Furthermore, market analysts view GPNs’ strong financials and strategic vision positively. Endorsements from Baird as a top 2024 fintech pick and TipRanks‘ “Strong Buy” rating with a 10.15% projected upside reinforce its status as a powerful player in the fintech realm.
Block (SQ)
Block (NYSE:SQ), a fintech trailblazer, recently launched a self-custody Bitcoin (BTC-USD) wallet and a Web5 toolkit, revolutionizing decentralized app development. These innovative strides diversify its portfolio and strengthen its market presence, marking the company as a formidable force in the financial technology landscape.
Financially, Block showcased its financial strength, reporting third-quarter GAAP earnings per share at negative 5 cents, exceeding expectations by 6 cents. Demonstrating further prowess, the company boasted a substantial revenue of $5.62 billion, reflecting a 24.3% increase year-over-year and surpassing forecasts by $190 million, highlighting its robust and upward financial trajectory.
Buoyed by BTIG’s upgrade from ‘neutral’ to ‘buy,’ recognizing the robust potential and synergy of integrating Block’s Cash App and Square ecosystems. Further bolstering this confidence, TipRanks analysts endorse a “Strong Buy” rating, signaling a significant 22.69% upside, underscoring Block’s promising and substantial growth trajectory in the fintech sector.
On the date of publication, Muslim Farooque 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