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3 Fast-Growing Fintech Stocks to Buy


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Like all other stocks, fintech stocks - financial technology stocks - have been hot and cold for the past few years. But compared to other sectors, fintechs have definitely been more hot and less cold.

The  KBW Nasdaq Financial Technology Index (INDEXNASDAQ: KFTX ) is up 53% since coming into existence in July of 2016, versus the 25% gain the S&P 500 has dished out for the same timeframe. A disparity that impressive should turn heads.

To that end, here's a closer look at three fintech stocks you'd be wise to put on your radar - if not directly in your portfolio. Not only does each have a lot of potential, but they have a lot of staying power to boot.

Fastest Growing Fintech Stocks:

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Green Dot Corporation (GDOT)

the name Green Dot Corporation (NYSE: GDOT ) might ring a bell. But if you can't quite make the connection, this company was all the rage back in 2014 when it teamed up with Walmart Inc (NYSE: WMT ) to offer checking accounts along with its prepaid credit cards, turning the world's biggest retailer into a bank.

Although the move didn't quite up-end the industry the way some felt it might at the time, in many regards it was this move that pushed other fintech stocks to the forefront.

Green Dot has certainly been no slouch in the meantime, however. Though companies like Square Inc  (NYSE: SQ ) and Fiserv Inc (NASDAQ: FISV ) have certainly capitalized on the ongoing move towards a cashless society, Green Dot's projected revenue growth of 14% this year and 9% next year says its simple solution is still the preferred option among a wide swath of consumers.

Fastest Growing Fintech Stocks:

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Paypal Holdings (PYPL)

Whereas Green Dot takes aim at consumers by offering them financial flexibility, Paypal Holdings Inc (NASDAQ: PYPL ) is taking a different approach at growth.

Yes, this is the same Paypal that online-auction giant eBay Inc (NASDAQ: EBAY ) is in the process of weaning itself from as its preferred middleman. Though the company hasn't explicitly said how much revenue or profit is driven by its relationship with eBay, some analysts believe eBay accounts for about a tenth of Paypal's business . It's not an enormous threat, but a notable one to be sure.

Paypal is cultivating other relationships, but a recent acquisition puts it in a whole new market that will allow it to compete head-on with Square Inc - one of the fastest growing fintech stocks for the past year or so. That acquisition? Sweden's iZettle , which allows small merchants an affordable, easy way to accept credit card payments.

Considering Square's revenue is expected to improve to the tune of 45% this year , clearly there's opportunity to tap into here.

Fastest Growing Fintech Stocks:

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IHS Markit Ltd (NASDAQ:INFO)

Last but not least, add IHS Markit Ltd (NASDAQ: INFO ) to your list of fintech stocks to look at if you weren't already.

IHS Markit isn't a household name, although it's unlikely any household hasn't benefited from its service. The company turns mountains of data into actionable insights for a range of industries including agriculture, construction, consumer-facing businesses and more.

It's not a terribly fast-growing company at this time. The pros are calling for revenue growth of only a little more than 7% this year , and about 6% for next year. That modest growth is mostly a function of its large size and market-saturation though. The tradeoff is reliable profits that are expected to grow a little faster than revenue.

That said, just a few days ago IHS Markit announced something that could light a fire under its fiscal performance. It's developing a way to safely and efficiently buy and sell loans using blockchain technologies . The plan is to expand the platform to more mainstream uses like a digital wallet.

The project is still in its infancy, but it's a far more practical and marketable application of blockchain technologies than ever-volatile cryptocurrencies. The whole point is to meld fiat currencies and technology, which is the direction things are pointed anyway.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter , at @jbrumley.

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The post 3 Fast-Growing Fintech Stocks to Buy appeared first on InvestorPlace .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks
Referenced Symbols: GDOT , PYPL , WMT , FISV



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