5 Best Fintech Stocks to Buy in April 2024, According to Analysts
These are the 5 Best Fintech Stocks to buy in April 2024, as per Wall Street analysts. Fintech or Financial Technology companies encompass a broad range of businesses including payment processing, digital banking, lending, financial software, and financial services. The fintech sector has robust growth potential, as many consumers still rely on traditional banking systems for their essential banking needs. It is an ever-evolving, dynamic sector with innovations being the key to survival.
The five companies that we will discuss today have made a mark in the fintech sector and have earned a highly optimistic view from analysts. Plus, analysts estimate huge upside potential in these stocks over the next twelve months, making them lucrative buys.
#1 Payoneer Global Inc. (NASDAQ:PAYO)
Payoneer operates a global cross-border payments platform, connecting millions of businesses and professionals across 200 countries. Its suite of services includes cross-border payments, working capital, tax solutions, and risk management. Payoneer’s expertise lies in its strong foothold in emerging markets such as Latin America and Asia and its emphasis on enabling small and medium-sized businesses with fintech solutions.
In FY23, Payoneer became a GAAP profitable company, posting a diluted profit of $0.24 per share while revenues jumped 32% annually. Also, ideal customer profiles (ICPs) grew 6% and ARPU (average revenue per user) rose 36% compared to FY22. Payoneer’s board also increased the share buyback authorization to $250 million while repurchasing $57 million of shares in 2023.
For FY24, Payoneer expects revenue to be between $875 million and $885 million, representing a 5.9% annual growth at the mid-point.
Is Payo a Good Stock to Buy?
With eight unanimous Buy ratings, PAYO stock has a Strong Buy consensus rating on TipRanks. The average Payoneer Global price target of $6.88 implies nearly 41% upside potential from current levels. In the past year, PAYO stock has lost 18.4%.
#2 Shift4 Payments Inc. (NYSE:FOUR)
Shift4 Payments provides end-to-end payment processing and technology solutions, including cloud enablement, business intelligence, analytics, and mobile. The company focuses on the entertainment, lodging & hospitality, airlines & travel, casino & gaming, retail, and food & beverage industries. Shift4 boasts over 200,000 customers, having processed more than $200 billion transactions annually.
In Q4 FY23, the company’s gross revenue, less network fees, grew 35% year over year, while adjusted earnings per share (EPS) jumped 61.7%. Plus, the company’s end-to-end payment volumes rose by 55% year-over-year.
For FY24, Shift4 anticipates that end-to-end payment volume growth will be in the range of 53% to 68%. Gross revenue, less network fees, is forecasted to grow by 38% to 44%.
Is Four Stock a Buy?
On TipRanks, FOUR stock has a Strong Buy consensus rating, backed by 17 Buys versus one Hold rating. The average Shift4 Payments price target of $93.18 implies 36.3% upside potential from current levels. In the past year, FOUR stock has lost 5.2%.
#3 MercadoLibre, Inc. (NASDAQ:MELI)
Argentina-based MercadoLibre is Latin America’s largest online e-commerce and payments ecosystem, with over 100 million unique active users. MercadoLibre is known for its e-commerce business. However, almost half of its revenue is generated from financial operations such as interest on installment payments, payment processing, and credit cards. In the past year, MELI stock has gained 18.9%.
In FY23, MELI’s net revenues rose 37.3%, with total payment volume growth of 47.9%. Further, diluted EPS jumped roughly 104% compared to FY22.
What is the Price Target for MELI?
MELI stock has a Strong Buy consensus rating on TipRanks based on 10 Buys and two Hold ratings. The average MercadoLibre price target of $1,935.45 implies 30% upside potential from current levels.
#4 PagSeguro Digital Ltd. (NYSE:PAGS)
Brazil-based PagSeguro is a financial services and digital payments company serving nearly 15% of the country’s population. The company offers payment processing software for e-commerce websites and mobile applications and point-of-sale terminals to small, micro, and mid-sized businesses.
In Q4 FY23, total revenue and income grew 9.7% year-over-year, while net income rose 19.7%. Also, in Q4, PagSeguro’s TPV (total payment volume) increased 20.6%, TFV (total finance volume) jumped 34.3%, and TBV (total banking volume) increased 45.4%.
Notably, PagSeguro processed almost R$1 trillion in financial transactions in Fiscal 2023, while adding more than 3 million new clients.
Is PAGS a Good Stock to Buy?
On TipRanks, PAGS stock has a Strong Buy consensus rating based on seven Buys and one Hold rating. The average PagSeguro Digital price target of $17.25 implies 27% upside potential from current levels.
#5 Global Payments, Inc. (NYSE:GPN)
Global Payments offers payment technology and software solutions to merchants, issuers, and consumers. GPN’s services encompass card, electronic, check, and digital-based payments across North America, Europe, the Asia-Pacific, and Latin America. The company boasts over 4 million payment customers in more than 100 countries, processing over 66 billion transactions each year.
In the past year, GPN stock has gained 22.2%. GPN also pays a regular quarterly dividend of $0.25 per share, reflecting a yield of 0.79%.
In Fiscal 2023, adjusted net revenue rose 7.2% and adjusted EPS jumped 11.8% compared to the previous year. Further, GPN expects adjusted net revenue growth in the range of 6% to 7% from the previous year. Also, adjusted EPS is projected to grow by 11% to 12%.
Is GPN a Good Stock?
GPN stock has a Strong Buy consensus rating on TipRanks, backed by 20 Buys and four Hold ratings. The average Global Payments price target of $162.29 implies 26.7% upside potential from current levels.
Key Takeaways
The fintech sector is all about innovation and disruptive technology. Companies in this sector offer high growth potential with financial services that promise to make people’s lives easier. Furthermore, analysts have awarded their Buy views on the aforementioned stocks with considerable share price appreciation expected in the next twelve months. Investors can consider these five fintech stocks after thorough research.
