Fintech
3 undervalued fintech stocks to become filthy rich by 2030
Fintech remains a darling in the investment world and many are looking into it fintech stocks buy. They have promising and innovative solutions, with the potential for substantial returns. As traditional banking systems face increasing disruption, the spotlight is shifting to emerging fintech companies.
Some companies are hidden gems, while others are market giants thanks to their exceptional leadership and strong market positions. Investors looking to diversify their portfolios and take advantage of the fintech boom should consider these lesser-known but promising companies. However, if you have less risk tolerance, you can also take the safer route and capitalize on the upside of the established giants. Both routes could produce significant returns by 2030 as long as investors don’t risk more than they can potentially afford to lose.
Now, let’s analyze the top three fintech stocks to buy to become filthy rich by 2030!
Fintech stocks to buy: Mastercard (MA)
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MasterCard (NYSE:BUT), a well-known name in the payment processing industry, stands out as one of the best fintech stocks to buy to get filthy rich. The company’s impressive revenue and earnings growth, combined with strong cross-border volume growth, make it an attractive long-term investment.
Mastercard is in full crisis after the pandemic. It continued to experience strong double-digit growth due to the increase in digital payments and cross-border transactions. While inflation and higher interest rates have dampened consumer spending, this has been a positive environment for its business.
However, that doesn’t appear to have shaken earnings growth, which has grown by more than 20% on average since 2020. latest quarterly financial results, revenues increased 10% year over year to $6.3 billion. Net profit increased 27% to $3.01 billion, with cross-border volume up 18% on a local currency basis. Mastercard has also seen an average compound annual growth rate (CAGR) of around 20% in its dividend over the past decade. If you are an investor looking for a combination of dividend growth and potential capital appreciation, MA stock is definitely one of the fintech stocks to buy.
Fiserv (FI)
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Fiserv (NYSE:FI) may not be a household name in the fintech arena, but its technology solutions underpin the operations of countless financial institutions around the world. Its full range of services enables banks and credit unions to thrive in the digital age.
Fiserv’s experience in major banking systems and proven track record make it an indispensable partner for major financial institutions. As banks and credit unions continue to modernize their infrastructure, Fiserv’s product offerings will remain in high demand. Its strategic acquisitions, like that one High-profile acquisition of First Data in 2019, have significantly strengthened its market positioning and customer base. This has done wonders for its profits since the pandemic.
In Q1 FY24, revenues increased 7% year over year to $4.88 billion. Net earnings increased 30% year-over-year to $735 million, led by 36% growth in the business solutions segment. Fiserv’s revenue and margin expansion continued, and management raised its fiscal year 24 earnings per share forecast to between $8.60 and $8.75 per share. This makes FI stock one of the best fintech stocks to buy to outperform the market through 2030.
Cash payment (PAYX)
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Paychex (NASDAQ:PAYX), a leading provider of payroll and human resources management solutions, is a hidden treasure in the fintech industry. As companies increasingly rely on digital tools to manage their workforce, Paychex’s cloud-based platform and suite of services will remain in high demand.
Paychex’s robust business model focuses on small and medium-sized businesses, addressing an important and growing market segment. The company’s revenues and earnings have increased over the past two years as the economy reopened after the pandemic. It embraces the new digital age, leveraging artificial intelligence to help its customers streamline the meticulous hiring process.
Additionally, Paychex benefits from high customer retention rates and recurring revenue from its more than 740,000 customers in the United States and Europe. In his latest quarterly financial results, revenues increased 4% year over year to $1.44 billion. Earnings per share rose 7% year-over-year to $1.38 per share, despite tight labor markets and continued inflationary pressures. With the recent announcement of new AI models, PAYX stock could make early investors extremely wealthy by 2030.
As of the date of publication, Terel Miles 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 InvestorPlace.com Guidelines for publication.
Terel Miles is a contributing writer for InvestorPlace.com, with over seven years of experience investing in the financial markets.