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4 Fintech Stocks Investors Will Love This May

Market-cap weighted performance of fintech companies have been better than FAANG stocks since early 2016. Fintech stocks are even expected to stay ahead of FAANG stocks through 2021. Read More...
Market-cap weighted performance of fintech companies have been better than FAANG stocks since early 2016. Fintech stocks are even expected to stay ahead of FAANG stocks through 2021.

A financial revolution has gripped Wall Street’s blue chip firms. From banking behemoths to asset management giants to even financial service players like MetLife and American Express, all are transforming the way they conduct business. These blue chip firms not only are the users but also investors in the most ground-breaking fintech, or financial technology firms, on Wall Street.

 

Fintech has, undoubtedly, combined the latest technological improvements with financial applications to help businesses drastically alter the broader industry and provide better, faster, cheaper and more appropriate financial services.

 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="What is Fintech?” data-reactid=”26″>What is Fintech?

 

Just a few years back, online banking seemed like a daydream. After all, who would have thought that you need not visit your bank’s local branch to carry out banking transactions. But now, almost all your banking activities can be fulfilled from anywhere. And it’s all because of financial technologies, including mobile banking apps, P2P payments and AI-powered banking platforms, to name a few.

 

So, basically fintech describes any organization that uses software and other technologies, including cryptocurrency, to provide financial services. Such companies use the Internet or even cloud services to execute financial services. 

 

At the beginning, fintech referred to such technologies that were used in back-end systems of banks and other financial institutions. But now, it includes a slew of other applications that are more consumer-friendly. You can easily handle your portfolio, trade stocks, manage insurance and pay for food through this financial technology.

 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Fintech Gaining Popularity&nbsp;” data-reactid=”34″>Fintech Gaining Popularity 

 

Banks, in particular, are able to make faster and better underwriting decisions with the help of financial technology. In fact, fintech is assisting banks in handling risks in a better way. Solid new sets of data and machine learning algorithms help banks and even insurers go through loads of information to quickly track financial fraud. 

 

These financial technologies can also be used to confirm borrowers’ identity and help ease the flow of credit to individual lenders and small business houses. Many of these technologies, by the way, can detect theft and those who are trying to dodge sanctions. Meanwhile, mega banks are using AI to gain a sound understanding of markets and operational risks.

 

At the same time, trading houses and exchanges are able to spot manipulations with the help of algorithms that study languages.

 

Insurtech has revolutionized  the insurance industry and includes everything, from home insurance, car insurance to data protection. And how can we forget Robo-advising? It has provided algorithm-based asset recommendations that has improved efficiency and reduced costs.

 

Last but not the least, mobile payment apps like Venmo are helping consumers easily exchange money and pay online or through mobiles. And with more number of consumers being comfortable in using smartphones, this payment app should gain popularity. By the by, Apple and Alibaba have already entered the mobile payment business with Apple Pay or Alipay.

 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="4 Top Fintech Stocks to Buy Right Away&nbsp;” data-reactid=”46″>4 Top Fintech Stocks to Buy Right Away 

 

Fintech companies, thus, are well poised to become a high-growth market in the near term. Cash is no longer convenient, and it’s more economical for financial institutions and individual customers to use technologies nowadays. 

 

To top it, market-cap weighted performance of fintech companies have in fact been better than FAANG stocks since early 2016, says Morgan Stanley. What’s more, major fintech players are expected to outperform FAANG stocks through 2021, the bank noted. This calls for investing in fundamentally sound fintech firms for better returns. We have selected four such firms that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).

 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="PayPal Holdings, Inc. PYPL operates as a technology platform and digital payments company. The company’s total revenues and earnings per share grew in the first quarter of this year. New user growth was cited as a reason behind the strong show.&nbsp;” data-reactid=”52″>PayPal Holdings, Inc. PYPL operates as a technology platform and digital payments company. The company’s total revenues and earnings per share grew in the first quarter of this year. New user growth was cited as a reason behind the strong show. 

 

The company currently has a Zacks Rank 2. The Zacks Consensus Estimate for its current-year earnings has increased 3.5% over the past 60 days. The stock’s expected earnings growth for the current year is 23.1%, higher than the Internet – Software industry’s projected rally of 14.8%. The stock also boasts a Growth Score of B.

 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Guidewire Software, Inc. GWRE provides software products for property and casualty insurers. The company provides core back-end software that property and casualty insurance companies use to power operations.” data-reactid=”60″>Guidewire Software, Inc. GWRE provides software products for property and casualty insurers. The company provides core back-end software that property and casualty insurance companies use to power operations.

 

The company currently has a Zacks Rank 1. The Zacks Consensus Estimate for its current-year earnings has risen 6.2% over the past 60 days. The stock’s expected earnings growth for the current year is 21.1%, way higher than the Business – Software Services industry’s estimated rally of 1.8%. The stock also boasts a Momentum Score of B.

 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="JPMorgan Chase &amp; Co. JPM operates as a financial services company. It has made a number of investments in the fintech sector that includes the buyout of WePay for nearly $220 million. WePay helps platforms to integrate payment solutions, including GoFundMe.” data-reactid=”64″>JPMorgan Chase & Co. JPM operates as a financial services company. It has made a number of investments in the fintech sector that includes the buyout of WePay for nearly $220 million. WePay helps platforms to integrate payment solutions, including GoFundMe.

 

The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has climbed 2.8% over the past 60 days. The stock’s expected earnings growth for the current year is 11.1%, higher than the Banks – Major Regional industry’s projected rally of 6.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="SS&amp;C Technologies Holdings, Inc. SSNC provides software products and software-enabled services to financial services industries. It helps managers integrate their daily tasks, including portfolio management, accounting and other back-office functions.” data-reactid=”68″>SS&C Technologies Holdings, Inc. SSNC provides software products and software-enabled services to financial services industries. It helps managers integrate their daily tasks, including portfolio management, accounting and other back-office functions.

 

The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 1.3% over the past 60 days. The stock’s expected earnings growth for the current year is 30.8%, higher than the Computer – Software industry’s projected rally of 7.2%. The stock also has a Growth and Momentum Score of A.

 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Today’s Best Stocks from Zacks&nbsp;” data-reactid=”72″>Today’s Best Stocks from Zacks 

 

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

 

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year. 

 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See their latest picks free &gt;&gt;” data-reactid=”78″>See their latest picks free >>

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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JPMorgan Chase &amp; Co. (JPM) : Free Stock Analysis Report
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
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Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report
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SS&amp;C Technologies Holdings, Inc. (SSNC) : Free Stock Analysis Report
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Zacks Investment Research” data-reactid=”79″>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
 
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
 
Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report
 
SS&C Technologies Holdings, Inc. (SSNC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

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