7 Undervalued Fintech Stocks to Buy Right Now

Fintech stocks have been some of the best performing stocks in recent years, as investors have bet on the industry’s continued growth. More specifically, mobile payment, peer-to-peer lending, online banking and investment management are just a few fintech products available.

Overall, fintech stocks have risen recently as investors have expressed more interest in the space. There is also a ton of potential with fintech startups as they provide new solutions to traditional problems and allow people to save money while doing so.

Of course, trading with them poses some risk. Overall, however, they provide better investments than traditional stocks.

With all this in mind, these seven undervalued fintech stocks are both established and new names with varying risk profiles. However, all have something new to offer both investors and users.

Undervalued Fintech Stocks: PayPal (PYPL)

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PayPal (NASDAQ:PYPL) is a payment processor that allows customers to send and receive money online. And with more than 429 million active accounts in 200+ markets, it’s no wonder this service has become so popular.

In total, the payment processor completed transactions worth $323 billion during the last quarter. In other words, PayPal is growing at an incredible rate. And the company is predicted to continue in the future and live up to its high expectations.

Furthermore, PayPal is also investing heavily in new technologies, such as artificial intelligence (or AI) and blockchain, which will allow it to continue to grow its business and meet the needs of more customers. And with the global economy increasingly online, PayPal is positioned to continue growing at an impressive rate.

Visa (V)

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Visa (SNEEZE:V) is a world leader in financial technology. From credit and debit cards to digital payments, Visa has a wide range of products that make it easy for people to pay for goods and services. Visa also offers many services for businesses, including merchant processing and fraud prevention. And in recent years, Visa has worked to expand its reach into the fintech world.

The company has invested in several startups and developed new products that use cutting-edge technologies such as blockchain, machine learning and AI. With this, Visa aims to provide even more convenient and secure ways for people to pay for goods and services. Because as the world of fintech continues to grow, Visa will be at the forefront, offering innovative solutions that make it easy for people to pay.

Furthermore, Visa has a strong track record of financial stability and growth and offers a range of benefits and rewards for cardholders – making it a smart choice for consumers looking to get the most for their money. With inflation on the rise, it’s no surprise Goldman Sachs says Visa and MasterCard (SNEEZE:MA) can collect 30%, given their solid operating models.

Undervalued Fintech Stocks: Lemonade (LMND)

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Lemonade (SNEEZE:LMND) is a delicious summer drink. But did you know that a company that shares the name of this refreshment can help fund your insurance premiums? More specifically, Lemonade is a peer-to-peer insurance company that allows customers to use their smartphones to purchase and manage their policies through the use of AI.

Through algorithms, it can analyze data, identify patterns and predict the probability of an event occurring. In turn, Lemonade has been able to use this data and create a product that is efficient and profitable for its customers. Now insurance companies are looking at how they can use artificial intelligence to make their products more effective – and Lemonade is at the forefront of this trend.

At its core, Lemonade uses data from its customers better than most traditional insurance companies. This information then sets them up for success and opens the door to a huge advantage for the foreseeable future.

Furthermore, Lemonade has been able to avoid hiring so many agents and adjusters by using AI chatbots. This means that employees can have time to focus on other aspects of the business and do less work. Specifically, Lemonade stands out from its competitors with one employee for more than 1,700 customers, while the competition typically has one employee for less than 150-450 customers.

The digital insurer has seen current premiums of $419 million and a 66% increase over last year – all thanks to its innovative policies. The company has stated that it does not want to pay out more than 75% in premium. In the 1st quarter, the company had a gross loss percentage of 90%. This is a key area of ​​improvement for the company; otherwise it is doing quite well and will bounce back with the overall market.

Intuit (INTU)

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Intuit (NASDAQ:INTU) is a financial software company that develops and sells tax preparation, personal finance and accounting software. Intuit offers a variety of products, from business accounting software to personal finance apps. This includes Intuit’s flagship product TurboTax, a do-it-yourself tax preparation program.

In total, Intuit has more than 14,200 employees and reported revenue growth of 25% in fiscal 2021. Millions of people worldwide use Intuit’s products.

Intuit also has strong financials, a good growth history and a competitive position in the software industry. It’s no secret that Intuit has always delivered strong returns, with revenue and earnings per share (or EPS) increasing in each of the past five fiscal years.

The software company has a strong competitive position and the various revenue streams of this company is what makes it so successful. It’s not just about taxes, but also how it generates money through other channels like Quickbooks and TurboTax, with a 67% market share in the US tax software industry. Intuit also benefits from a large and loyal customer base, with approximately 100 million customers using its products.

Therefore, with all this in mind, Intuit is a great stock to invest in for long-term growth.

Undervalued Fintech Stocks: Block (SQ)

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Block (SNEEZE:SQ) is a financial technology company providing blockchain and digital currency tools founded by Jack Dorsey, a co-founder of Twitter (SNEEZE:TWTR). Block has worked to make blockchain more user-friendly and lower the threshold for mass adoption. To fulfill this mission, it operates an open source software that will enable quick and painless access to financial services through the power of blockchains.

Block offers its services to businesses and individuals through the Block Cash app, which allows users to send and receive money, make online purchases and track spending. Block also offers a business management platform called Block Connect, which helps businesses accept payments, manage customer data and connect with other blockchain-enabled businesses.

Jack Dorsey’s resignation from Twitter has been greeted with enthusiasm by investors as he now pours all his energy into Block. However, Square’s CEO and former Twitter co-founder is a big believer in the future of cryptocurrency and blockchain. This makes Block slightly riskier than the average fintech. But that means it has the power to be a multi-bagger. Therefore, patience is a virtue with this one.

Goldman Sachs (GS)

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Goldman Sachs (SNEEZE:GS) is one of the world’s most prestigious investment banking companies., and has been at the forefront of innovation in financial services in recent years.

The company was an early adopter of the mobile banking movement and was one of the first banks to offer a complete suite of online services. Goldman Sachs has also been a pioneer in blockchain technology, which promises to revolutionize how financial transactions are carried out. As a result of its innovative approach to digital disruption, Goldman Sachs is well positioned to continue its role as a leading provider of financial services for years to come.

In addition, the company has a history of steady growth and profitability, and it is today one of the largest investment banks in the world. Specifically, Goldman Sachs has a strong presence in both the US and Europe, and it is one of the few banks that survived the 2008 financial crisis.

The multinational investment bank reported net income of $59.34 billion and revenue of $21.64 billion for fiscal 2021, coming in at an impressive clip, with overall performance measuring up to expectations across all measures. Also, despite a tough operating environment, Q2 2022 earnings were $7.73 per share, beating the consensus estimate of $6.56 per share.

Overall, Goldman Sachs has been a great investment for many investors. The company offers stability and long-term growth potential, with an impressive track record of success that is expected to continue into the future.

Undervalued Fintech Stocks: SoFi (SOFI)

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SoFi (NASDAQ:SOPHIE) is an online personal finance company that offers a variety of financial products, including student loan refinancing, personal loans and home loans. The company also has a range of banking products to offer, including high-yield savings cards and current accounts.

SoFi has more than 3.9 million members, and this user base is growing rapidly. It is growing rapidly and expanding into new markets, such as investment management and insurance. SoFi has since expanded and now offers credit cards, equity loans and more. The aim is to continue growing by expanding into new markets and offering new products.

As I touched on earlier, student loan refinancing is a large part of SoFi’s business. However, the recent pause in federally subsidized loan payments has been beneficial to millions of Americans in debt. Unfortunately, as SoFi CEO Anthony Noto notes, “our student loan business was cut in more than half” after the student loan payment hiatus.

Nevertheless, SoFi has managed to grow despite these problems. That’s because the online personal finance company has diversified its business model through acquisitions such as payment processing platform Galileo and cloud-based core banking system Technisys. In addition, the approval of the bank’s charter opens up many other business opportunities – meaning the sky is the limit for this one.

At the date of publication, Faizan Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, with reservations InvestorPlace.com Guidelines for publication.