Top 5 Fintech Stocks: This article ranks the ten top fintech equities to purchase in 2024. If you wish to bypass our extensive discourse on the fintech sector, proceed directly to the list of the five top fintech stocks to purchase in 2024.
The amalgamation of blockchain, machine learning, and artificial intelligence is significantly influencing the transformation of the financial technology sector by providing enhanced security and efficiency. Vanguard asserts that the fintech industry is transforming in response to the increasing prominence of emergent trends including digital currencies, ‘buy now, pay later’ models, mobile payment solutions, smart contracts, net banking, and RegTech. These developments provide customers with secure and convenient alternatives. Fitch Ratings projects that fintech issuers in North America and Europe will experience a varied performance in 2024, with revenue growth anticipated for the majority but EBITDA growth and margin expansion anticipated to be more subdued in comparison to recent years.
The scrutiny of capital allocation decisions has been heightened since 2022 as a result of the substantial increase in the cost of capital. Notwithstanding obstacles, traditional financial institutions are relinquishing market share to fintechs, while consumer spending, a pivotal catalyst for the industry, continues to be robust in North America. Although specific European markets encountered downturns in 2023, there are still lingering macro-related risks due to consumers allocating a portion of their surplus savings.
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Top Fintech Stocks to Purchase in 2024
5. STNE: StoneCo Ltd. (NASDAQ)
StoneCo Ltd. (NASDAQ:STNE) is a Brazilian-based provider of financial technology and software solutions. Its area of expertise is enabling integrated partners and merchants to conduct electronic commerce across multiple channels, including in-store, online, and mobile. Goldman Sachs upgraded StoneCo Ltd. (NASDAQ:STNE) to “Buy” status on January 22. The performance of payment stocks has surpassed that of the Ibovespa index since early October. Goldman analysts propose that the prognosis for these stocks is “slightly more favorable.” This positive trend is ascribed by Goldman Sachs to banking initiatives, declining interest rates, and stabilizing growth trends.
In the third quarter, 32 hedge funds were bullish on StoneCo Ltd. (NASDAQ:STNE), up from 35 funds in the previous quarter, according to the database of Insider Monkey. The company’s greatest shareholder is Warren Buffett’s Berkshire Hathaway, which holds 10.7 million shares valued at more than $114 million.
StoneCo Ltd. (NASDAQ: STNE), unlike Visa Inc. (NYSE: V), PayPal Holdings, Inc. (NASDAQ: PYPL), and Mastercard Incorporated (NYSE: MA), is among the most noteworthy fintech stocks to monitor.
4. NYSE: GPN Global Payments Inc.
Global Payments Inc. (NYSE: GPN) is a provider of software and payment technology solutions with a global presence. Three business segments comprise the organization: merchant solutions, issuer solutions, and consumer solutions. It is among the most advantageous fintech securities to purchase.
Evercore ISI upgraded Global Payments Inc. (NYSE: GPN) from In Line to Outperform on February 2. In 2024, analyst David Togut expects the organization’s financial performance to steadily improve. The company’s strategic position in high-growth, technology-enabled products, the cumulative cost synergies from the EVP Payments acquisition, and the anniversaries of divestitures in its Netspend and gaming businesses all contribute to this optimistic outlook.
In the third quarter, 47 hedge funds were bullish on Global Payments Inc. (NYSE: GPN), up from 55 funds in the previous quarter, according to the database of Insider Monkey. Orbis Investment Management, led by William B. Gray, holds the largest stake in the company, with a total of 7.14 million shares valued at more than $824 million.
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3. NYSE: NU Nu Holdings Ltd.
A digital banking platform that offers financial services in Brazil, Mexico, Colombia, and beyond is operated by Nu Holdings Ltd. (NYSE: NU). The organization provides a range of financial services, including debit and credit cards, mobile payment solutions, savings and business accounts, cryptocurrency trading via NuCrypto, investment products such as NuInvest, unsecured personal loans, and an in-app ‘purchase now, pay later’ option. It is among the most important fintech stocks to track. Nu Holdings Ltd. (NYSE: NU) disclosed its financial results on November 14. The company’s adjusted net income of $355.6 million and revenue of $2.1 billion surpassed the expectations of the market by $50 million.
In the third quarter, 50 hedge funds were bullish on Nu Holdings Ltd. (NYSE: NU), up from 44 funds in the previous quarter, according to the database of Insider Monkey. Berkshire Hathaway, led by Warren Buffett, holds the largest stake in the firm, with a valuation of $776.6 million on over 107 million shares.
2. Block, Inc. (NYSE: SQ)
Block, Inc. (NYSE: SQ) is a financial services-focused technology corporation. Square, which provides integrated technology solutions for financial services and commerce; Cash App, which enables users to transfer, spend, or invest money in bitcoin or stocks; Afterpay, which facilitates the connection between businesses and consumers; and TBD, which is in the process of developing an open-source platform and developer infrastructure to enable global economic participation. Block, Inc. (NYSE: SQ) is an investment leader among fintech companies.
On January 30, BTIG upgraded Block, Inc.’s (NYSE: SQ) rating from Neutral to Buy. The upgrade is predicated on the interconnectedness of Block’s Cash App, Square, and individual units’ and units’ respective strengths and growth potential. BTIG further acknowledges the organization’s increased focus on cost control and predicts that Block, Inc. (NYSE: SQ) will attain its objective of an adjusted operating margin in the mid-20s by 2026.
As of the third quarter, Insider Monkey’s database revealed that sixty hedge funds held a long position in Block, Inc. (NYSE:SQ), up from sixty-six funds in the preceding quarter. The company’s greatest shareholder is Viking Global, which is owned by Andreas Halvorsen and holds 12.3 million shares valued at $545.5 million.
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1. Fiserv (NYSE:FI) Corporation
Fiserv, Inc. (NYSE:FI) is an international provider of technology for financial services and payments, with the Acceptance, Fintech, and Payments divisions operating as its business segments. Fiserv, Inc. (NYSE:FI) disclosed its FY4 non-GAAP earnings per share (EPS) at $2.19 and revenue at $4.92 billion on February 6. These figures surpassed the projections of Wall Street by $240 million and $0.04, respectively. In 2024, Fiserv expects organic revenue to increase by 15% to 17%, compared to an estimated 8.79% year-over-year growth. Additionally, the organization forecasts adjusted earnings per share between $8.55 and $8.70, which surpasses the consensus estimate of $8.60 and signifies a fourteen to sixteen percent growth rate.
As per the third quarter database of Insider Monkey, the number of hedge funds that held a favorable stance on Fiserv, Inc. (NYSE:FI) increased from 68 funds in the previous quarter to 70. Harris Associates, with an approximate value of 15 million shares valued at $1.7 billion, holds the largest stake in the organization.
We rank Fiserv, Inc. (NYSE: FI) sixth among the top fintech equities. Visa Inc. (NYSE: V), PayPal Holdings, Inc. (NASDAQ: PYPL), and Mastercard Incorporated (NYSE: MA) are also included on the list.
