Fintech
The 3 best Fintech stocks to buy in June 2024
Explore the dynamic fintech landscape with these three best fintech stocks to buy
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The fintech space is full of promising stocks that offer innovative new ways of approaching finance. Digital banks continue to gain traction, offering opportunities for sustained future growth. According to a recent report, the global fintech sector is poised for rapid expansion during the current decade. Its valuation jumped to $257.3 billion in 2022 and is expected to rise to $882.3 billion by 2030, showing a compound annual growth rate (CAGR) of 17%.
However, in any industry there are both winners and losers, which makes it imperative to invest in the best fintech stocks buy, offering a healthy upside. The following three companies should be at the top of your buying list this June.
PayPal (PYPL)
PayPal (NASDAQ:PYPL) is arguably the largest disruptor in the fintech space, boasting a leadership position in the niche. To be fair, though, despite his familiar name, PYPL stock has been far from a profitable investment. In recent years it has essentially been a value trap, with a negative three-year return of 74%.
However, under the new leadership of CEO Alex Chriss, PayPal is injecting new energy into its operations, signaling a major turnaround. Recent stock market activity suggests that Chriss’ early efforts have paid off, with PYPL stock moving head-to-head with the S&P500 in the last six months.
Additionally, the company’s financial performance has been nothing short of impressive. It has consistently exceeded analysts’ expectations over the past three quarters. In its most recent financial report, it recorded a robust 10% increase in salesdriven by a significant 14% increase in total payment volume.
Chriss’ efforts to rejuvenate the business are still in their infancy, but they could redefine PayPal’s trajectory.
Nu Holdings (NU)
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Nu Holdings (NYSE:NU) is a Brazilian digital banking pioneer that has been one of the hottest stocks to buy this year. Its shares are up 42% year to date (YTD), fueled by robust top-line and bottom-line growth. Furthermore, despite the extraordinary growth in value this year, Wall Street analysts expects a 14% rise in Nu shareswhich earned a “Strong Buy” rating.
It ended a superb first quarter (Q1), where it is the user base rose to 99.3 million, an increase of 26% on a year-over-year (YOY) basis. Additionally, its revenue increased by 69% with net profit increasing by 167%. Additionally, it now boasts 17 million active investor customers and 82.6 million active users overall, growing rapidly year-over-year. It’s no wonder maverick investors like Warren Buffett are taking notice. Berkshire Hathaway (NYSE:BRK-A, BRK-B) now holds 107.1 million shares, a 2.3% stake in the company.
Additionally, as customers interact more actively through its powerful platform, Nu’s financial ecosystem promises spectacular returns.
Visa (V)
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Visa (NYSE:V) is a towering figure in the credit and debit card industry, profiting from its lucrative transaction-based revenue model. By leveraging its cutting-edge technology and scale, Visa can efficiently process millions of transactions with minimal costs, strengthening its profit margins.
To put things in perspective, its gross profit margins are 98%, which have remained essentially unchanged for the past five years. Likewise, its net profit margin is 54%, basically in line with the five-year average. As a result, its cash balance and short-term investments increased dramatically 410% to $20.1 billion last time year compared to 2014. Another thing that remains unchanged is its commitment to increasing shareholder rewards. The yield is 0.75%, increasing the dividend payout for the last 15 consecutive years.
Looking ahead, the company’s strategic partnerships and massive proprietary data sets provide a solid foundation for growth. Additionally, its investments in generative AI technologies could further enhance its operational capabilities and generate fundamental value.
As of the date of publication, Muslim Farooque 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
Muslim Farooque is a passionate investor and an optimist at heart. A longtime gamer and technology enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s degree in applied accounting from Oxford Brookes University.