Fintech
3 Fintech Stocks to Buy on the Dip: June 2024
Are you thinking of purchasing the dip? Here are three promising fintech picks for this month
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If you are passionate about fintech and waiting for the perfect buying opportunity, here are the best fintech stocks to buy on the dip this June.
Fintech companies have been successful because they integrate the traditional financial system, which is solid but rather slow. Before fintech became mainstream, you could expect to receive your money within days, thanks to the bureaucracy inherent in TradFi.
Now, thanks to fintech, businesses and individuals have greater hope of getting their payments processed more timely and without being stuck for days. This means that fintech stocks (i.e. fintech companies that trade publicly) won’t go out of fashion anytime soon, and fintech investors are sure to reap nice dividends in the coming years.
Here are our top picks for fintech stocks to buy on this season’s dip.
StoneCo Ltd (STNE)
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StoneCo (NASDAQ:STNE) is a fintech company that provides end-to-end payment solutions to small and medium-sized businesses in Brazil.
The company was the first non-banking company to offer payment solutions for the company’s merchants. His shares have become more important than ever when Warren Buffett Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) bought a stake in the company in 2018 (before coming out of that position in the month of February).
StoneCo shares have lose more than 35% year to date. That is thanks in part to mixed results for the first quarter and the resignation of co-founder André Street.
However, StoneCo has positive elements that make it an attractive proposition for a fintech stock to buy on a dip. For example, lower short-term interest rates in Brazil make it a cost-effective growth opportunity for investors.
Investors will be happy to hear this too JPMorgan updated StoneCo shares from Neutral to Overweight this month, stating “attractive EPS potential.”
Lemonade Inc (LMND)
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Lemonade (NYSE:LMND) is a renters, homeowners, life, auto and pet insurance company. The company, founded in 2015, differentiates itself from its competitors by using artificial intelligence in nearly all of its processes. It also targets younger generations and invests in social impact as part of its appeal.
Even though the company has seen revenue decline up 25% for the first quarter compared to the same period last year, its stock price has remained mostly neutral this year and is down 20% compared to the previous year.
However, if the future of insurance is artificial intelligence, then Lemonade will be at the forefront of this change. And with that, there will be an appreciation in the value of his shares.
The company’s massive bet on artificial intelligence could pay off in the near future, as evidenced by the fact that its shares rose 8% when CEO Daniel Schreiber appeared on CNBC to talk about why the insurance industry is ripe for the AI revolution.
As a company, Lemonade has interesting days ahead. It could be one of the most promising fintech stocks to buy on a dip right now.
Adyen (ADYEY)
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Adyen (OTCMKTS:ADYEY) the actions are down 30% year-over-year (YOY) and fell more than 15% in April after the company reported weaker-than-expected first-quarter sales.
The payments processor reported that net revenue grew 21% to 438 million euros ($469.3 million) in the first three months of the year, slightly missing analysts’ expectations. ADYEY stock has yet to recover from its April crash.
But Adyen’s recent outlook shouldn’t dampen investor sentiment. That’s because ADYEY stock is up 83% since its epic drop last year. During that time, he lost a third of his valuation during an “apocalyptic” sell-off. This demonstrates the Dutch company’s ability to bounce back even after a devastating period.
Looking further out, the question is whether Adyen will be able to sustain this resilience, and analysts believe it can. Outside 28 analysts, 17 rate Adyen a Buy, with three and eight giving it an Overweight and Sell rating, respectively. Adyen is definitely worth considering as one of the best fintech stocks to buy on the dip for your portfolio this June.
As of the date of publication, Hope Mutie 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 those of InvestorPlace.com Guidelines for publication.
Hope Mutie is an enthusiastic writer about finance and cryptocurrencies. At InvestorPlace, she keeps her finger on the pulse of the stock and cryptocurrency markets to create in-depth, information-rich content to help investors navigate the market with confidence.