Fintech
If you can only buy one fintech stock in July, it better be one of these 3 names
Join the fintech frenzy before it’s too late. Here are three fintech stocks to buy before the end of July.
Financial technology, or fintech, is a branch of banking that uses technological innovation to provide all types of financial products and services to users around the world from the convenience of their mobile devices. With fintech, global citizens can save their money, borrow, lend, and even invest without ever having to set foot in a bank or other financial institution. This technological innovation has led to the emergence of a new class of high-potential stocks called fintech stocks.
Fintech stocks are among the most promising spaces to invest in, with analysts predicting they will maintain a year-on-year trend 16.5% growth until 2032.
Furthermore, the introduction of newer technologies in the sector, such as payment processing, P2P lending, and blockchain technology, will further contribute to its growth and development, making it a promising landscape to invest in. This article explores three of the top fintech stocks to buy this year.
National Loyalty Information Services (FIS)
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Fidelity National Information Services (London share:FIS) is an American company known for developing financial technology. It has a portfolio of products that meet the needs of the financial services industry, especially payment processing, wealth management, consulting, retail and institutional banking. Profile, a banking application, is among these products.
In recent years, Fidelity National Information Services has expanded its portfolio. In 2019, purchased Worldpaya global electronic funds transfer system. A year later, the company acquired Virtus Partners, a wealth management business.
Since then, the company has acquired other holdings, such as Bond Financial Technologies and Torstone Technology, demonstrating a commitment to growth and a willingness to integrate emerging technologies, such as blockchain and artificial intelligence.
All these factors have contributed to its recent strong levels of profitability. Its latest quarterly report indicates that it is having a fantastic year financially, as demonstrated by the performance of FIS stock. According to the report, FIS returned an impressive 23.4% in shareholder value and generated net earnings of $768 million.
Robinhood Markets (HOOD)
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Robinhood Markets (London share:HOOD) is an American financial services provider headquartered in Menlo Park, California. The company is known for its popular mobile electronic trading platform, which facilitates trading of various financial instruments, from stocks and exchange-traded funds (ETFs) to cryptocurrencies.
Robinhood Markets has outpaced most of its competitors in the financial industry this year with a series of smart innovations in its products. A prime example of this is the introduction of commission-free stock trading within the Robinhood mobile trading app.
Another great innovation of the company is the launch of Robinhood Golda product that many predict will likely change the financial landscape. Robinhood Gold offers a ton of perks, such as 5% interest on uninvested brokerage money, a 1% deposit increase on new deposits, a credit card with unlimited 3% cash back on all purchases, and much more. These perks cost only $50/year, which is significantly less than other credit cards on the market.
Additionally, Robinhood Markets has had an impressive run on the financial front this year. According to its latest quarterly reportThe company has seen huge increases in several key metrics such as total net sales and net income. Total net sales increased by 40% to $618 million, while net income increased to $157 million.
Holding Company (NU)
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New participations (London share:NEW) is a Brazilian digital bank headquartered in São Paulo. It is widely considered the largest fintech in Latin America, boasting over 80 million customers in the region. Nu Holdings offers various financial solutions to its users, such as bank accounts, brokerage accounts, personal loans, credit cards and more.
Its dominance in the Latin American market is enormous, and the numbers confirm it. According to its latest quarterly reportThe company generated net income of $378.8 million, more than double the previous year’s figure of $141.8 million.
It also saw huge increases in key metrics such as total revenue and customer base growth. Total revenue increased 67% to $2.7 billion, while the customer base grew to 99.3 million at the end of the quarter.
As of the date of publication, Joel Lim did not have (either directly or indirectly) any position in the securities mentioned in this article. The views expressed in this article are those of the author, subject to InvestorPlace.com policies Publishing Guidelines.
As of the date of publication, the responsible curator had not (either directly or
indirectly) any position in the securities mentioned in this Article.
Joel Lim is an InvestorPlace.com contributor and financial content provider who creates content for several firms such as LTSE and Realtor, as well as financial publications including Business Insider, Yahoo Finance, the Mises Institution, and the Foundation for Economic Education.