3 Fintech Stocks That Will Keep Growing in 2024 and Beyond

Fintech companies are changing the way we look at finance.

These companies use the latest technology, like artificial intelligence (AI) and offer high security, a key reason they are preferred over traditional banks. Investors are looking for the easiest way to invest, borrow, save, and trade. If you invest in the right companies at the right time, you could take home solid gains over the next five years. The face of fintech will undoubtedly change over the years, and investing now can yield big returns.

Let’s explore three fintech stocks that will keep growing in 2024 and beyond. 

Sofi Technologies (SOFI)

Source: Poetra.RH / Shutterstock.com

An online fintech company, SoFi Technologies (NASDAQ:SOFI) has changed the way we handle our money. It sets itself apart with its strong position as a bank having a national banking charter. Continually increasing its product offerings, SOFI has seen a significant increase in the number of users. The company reported its first net income in the recent quarter, with a 44% jump in users in 2023 year over year (YOY).

While the company is seeing high demand for its lending products, it aims to move away from reliance on them due to the interest rate impact. The management is aiming for a 20% to 25% revenue growth by 2026.

It expects adjusted net revenue between $550 million to $560 million this year and a GAAP net income ranging from $10 million to $20 million for the quarter. SOFI ended 2023 with 7.5 million members and aims to add at least 1 million members in each quarter this year. 

SOFI looks like one of the most promising fintech stocks that uses technology to improve customer experience and handle operations. A large part of its operating cost remains fixed, which allows it to report earnings growth. Also, the company managed to reduce its operating expenses strategically.

Exchanging hands for $8.86 today, the stock looks cheap and highly undervalued to me. Cathie Wood of ARK Investment Management has been loading up on the stock and has increased her stake in the firm by 144%. SoFi Technologies could double your money in 2024. 

Visa (V)

several Visa branded credit cards

Source: Kikinunchi / Shutterstock.com

Trading at its 52-week high today, Visa (NYSE:V) is inching closer to $300. And, we could see it soar higher throughout 2024.  

Catering to 100 million merchants with its successful business model, it lowers operating costs while steadily generating revenue. Fundamentally, the company has a solid balance sheet and reports impressive revenue growth each quarter. 

Additionally, Visa is a dominant card platform that has left its competitors in the dust. Multiple factors are working in favor of the company. Its business model charges a fee every time a user makes a transaction using the Visa card, ensuring consistent revenue. 

As the world is transitioning towards digital payments, the card usage will increase in the coming years. Despite inflation, the company thrived, now holding over 60% of the total payment volume in the U.S. and boasting over four billion Visa cards in circulation. 

Five years from now, Visa stock will have doubled your money. Trading at $285 today, the stock is up 10% year to date (YTD) and enjoys a dividend yield of 0.73%. I had recommended the stock in Jan when it was trading at $262. So, if you had bought it then, you’d be sitting on 8% gains already. However, now isn’t too late to buy the stock. 

Mastercard (MA)

Close up of a pile of mastercard credit load debit bank cards.

Source: David Cardinez / Shutterstock.com

The biggest competitor of Visa, Mastercard (NYSE:MA) offers credit and debit cards and has a large market share. With people switching from cash to cards, this company is set to benefit in the years to come. A lot of families tend to have both Visa and Mastercard in their wallet. They remain the most trusted companies in the payment industry. 

Also, Mastercard’s financial performance over the past decade sets it as one of the best industry leaders today. In the recent quarter, the company reported a 13% YOY jump in revenue and an 11% YOY jump in net income growth. In addition, it pays dividends with a yield of 0.55% and has been reporting net profit margins for many years. 

Trading at $478 today, the stock sits at a 52-week high and will keep moving upwards. Mastercard has rallied after reporting impressive fourth-quarter results and is up 13% YTD. The company has over 2.5 billion cards in circulation and caters to more than 100 million merchants.

Finally, its global presence and the wide range of offerings including data solutions will be a growth driver. True, the stock isn’t cheap. But, if you believe that the company has the potential to repeat the past success, it can generate gains in the coming years. MA stock is up 35% in the year and over 110% in the past five years. The stock will bring stability to the portfolio and is the one to buy and hold for the long term. 

On the date of publication, Vandita Jadeja 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 the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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