3 Cheap Fintech Stocks to Buy Before They Come Back

With the emergence of trends such as artificial intelligence and 5G, businesses and consumers are becoming extremely dependent on technology. As a result, these devices are willing to pay a lot for useful technological tools. This includes systems that make financial services easier to offer and implement. In light of that situation, now is a very good time to buy cheap fintech stocks.

Put another way, the high-tech companies that provide widely used financial services are going to perform quite well going forward. There will be a very high demand for their systems.

In the past year, the sector has been hit due to unjustified fears of sky-high interest rates. Poor performance by a number of fintech companies hasn’t helped either.

Consequently, there are many good, cheap fintech stocks to buy at this time. For knowledgeable investors, the opportunity lies in this.

Cheap Fintech Stocks: Paysafe (PSFE)

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Paysafe (SNEEZE:PSFE), a payment preference company, is traded at a basement value of 1x the subsequent income. This despite the fact that analysts expect the company’s sales to rise slightly this year and increase 7%-9% next year. Estimates also require Paysafe to generate a small profit in 2023.

Also of note, the company’s total payment volume jumped 13% year-over-year in Q1 to $31.2 billion, driven by 21% YOY growth in its US payment processing business.

Additionally, as I mentioned earlier, the company is very well positioned to capitalize on the rapidly growing popularity of digital gambling. That’s because two of the most popular digital gambling companies —DraftKings (NASDAQ:DKNG) and Flowing entertainment (OTCMKTS:PDYPY) — use Paysafe to process your customers’ payments.

Finally, the decision to select Bruce Lowthers as CEO in May is encouraging.

Lowthers has held management positions in many fintech companies, and before he was employed at Paysafe, he was president of Fidelity National Information Services (SNEEZE:FIS), which has a market value of over 60 billion dollars.

As president of FIS, Lowthers “increased speed to market for innovative new products and services, increased cross-selling opportunities and strengthened the overall customer experience,” Paysafe reported.

PayPal (PYPL)

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PayPal reported stronger-than-expected second-quarter results on Aug. 2, while the company’s alliance with activist investor Elliott Management should boost PYPL stock considerably in the long term. That’s because Elliott is likely to push PayPal to cut costs and return more capital to investors.

It’s also worth noting that the shares are now trading at a price-to-earnings ratio of just 25x. Given the company’s strong growth (its revenue is expected to grow 10% this year and 14% in 2023), and its impressive profitability (the firm’s net income came in at $4.17 billion last year), that’s an attractive valuation.

Finally, PayPal CEO Dan Schulman reported that the company’s operating margin should increase in the 4th quarter, and the partnership with Amazon (NASDAQ:AMZN) should increase its financial results.

Cheap Fintech Stocks: SS&C Technologies (SSNC)

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SS&C technologies (NASDAQ:SSNC) provides “software and related services to institutional investors, alternative investment managers and wealth management clients.”

In the 2nd quarter, revenues rose by 7.7% on an annual basis, excluding currency fluctuations. While SS&C’s margins and bottom line shrank YOY amid high inflation and a far-from-ideal investment environment, it remained quite profitable last quarter. Specifically, the firm’s net cash from operating activities came in at $264 million, while it reported EBITDA, excluding certain items, of $471 million.

As investors realize that an intense recession is not ahead, investment volume should increase, causing demand for SS&C’s offerings to increase.

Changing hands at a forward price-to-earnings ratio of just 12.95x, SSNC shares are very cheap.

As of the date of publication, Larry Ramer held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Guidelines for publication.