Fintech Favorites 3 Stocks Eyeing A December Growth Spurt

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Unlike tech stocks, fintech companies have had a good year so far The banking collapse has pushed customers towards fintech companies, which are perceived as stable and reliable. This industry is always in flux: As we go digital, demand for credit cards will increase, and as student loans begin to pay off, demand for personal loans will increase. Companies that provide these services will benefit in the coming months, and investing in these three fintech stocks will help you grow in December. With that in mind, let's take a look at three fintech stocks worth buying.

B visa

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Visa (NYSE: V ) is one of my favorite fintech stocks to buy for growth, and it never disappoints. It helps in payment processing all over the world and has a huge market share. He has a long history of rewarding shareholders and runs a company that will continue to generate revenue as the economy improves. Visa will gain more power as consumer spending increases. With a valuation of $515 billion, the company has set a benchmark for itself and is one of the leading payment processors today.

At the time of writing, V shares are trading at $254 and near their 52-week high. The stock is up 22% year to date and will continue to rise despite the recession. The compelling reason to bet on this stock is its dividend yield. Visa has a dividend yield of 0.81% and pays a quarterly dividend of $0.52. The company has been increasing its dividend since 2008, making it an ideal dividend stock.

In terms of financial status, Visa does not disappoint here either. In the third quarter, the company reported net income of $32.7 billion and an impressive 9% year-over-year increase in payment volume. Net income was $17.2 billion, up 15% from last year. I think the upcoming holiday season will help the company grow its numbers and we will see a better fourth quarter.

Since the company earns a commission on every transaction made by its users, it is able to keep operating costs low while generating revenue. Visa will continue to dominate the market as digital payments and credit card usage continue to grow in the coming years.

Fintech Stocks Worth Buying: SOFI Technologies (SOFI)

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Regardless of how the economy fares, investing in SoFi Technology (NASDAQ: SOFI ) is a smart move. The long-term prospects for fintech companies look attractive. As consumers lose trust in traditional banks, there's been a big shift toward fintech giants, and SoFi is capitalizing on it. The company recently announced its exit from the cryptocurrency space, which will be a boon in the long run. It will be able to manage resources in thriving business sectors including consumer loans.

Its revenue continues to grow and it will report profitability in the first quarter of 2024. SoFi's finances are strong, and the company expects deposits to grow from $7.3 billion to $15.7 billion in 2023. The company's total revenue reached $537 million, an increase of 27% over last year. Membership also increased by 717,000 during the quarter, proving that the company is on the right track. SoFi has been able to gain the trust of customers and this will help it expand in the coming years.

The stock is currently trading at $7.96, off its all-time high of $25, and any weakness in the stock presents a buying opportunity. 2024 could be a critical year for businesses to resume student loan repayments, leading to increased demand for consumer loans. The company's earnings will continue to grow in the next quarter and the sooner you invest in the stock, the higher your chances of profiting.

Cathy Wood's Arc Investments bought 200,000 shares last week after buying 252,000 shares earlier in the week. I think this is just the beginning for SoFi and it definitely has a long way to go.

Confirmation of Holdings (AFRM)

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Although Buy Now, Pay Later (BNPL) platforms are not very popular in the industry, the numbers prove otherwise. We've seen strong demand from BNPL this year, and Affirmar Holdings (NASDAQ: AFRM ) is one of the leading fintech companies in the competition. It offers point-of-sale financing to retailers and consumers. Rising inflation made BNPL more popular, and it helped Affirm grow.

The stock is trading at $38.56 today. The stock is up 323% in the past six months and 147% year over year. It is trading at a 52-week high, but I think it is undervalued. A recent report from Adobe Analytics shows that BNPL purchases grew 14% year-over-year, with online purchases totaling $7.3 billion in November.

In the first quarter of 2024, the company managed to beat analysts' expectations and raised its forecast for this year as well. The company earned $497 million through partnerships with major e-commerce platforms like Shopify (NYSE: SHOP ). However, the company remained unprofitable and recorded a net loss of $172 million, much lower than the loss of $251 million in the same period last year.

The BNPL market is expected to grow at over 30% this decade, which means Affirm will benefit from improved consumer spending. Given the current market conditions, I am confident that the company's holiday season earnings will be impressive and push the stock price closer to $50.

At the time of publication, Bandita Jadeja had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and adhere to InvestorPlace.com's publication guidelines

Bandita Jadeja is a CPA and freelance financial writer who loves reading and writing about stocks. He believes in buying and holding profits for the long term. Knowing the words and numbers helps him make a clear analysis of the stock.

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