Top 3 fintech stocks to buy as the industry rebalances
- The fintech industry has struggled in the past few months.
- Most stocks have crashed by more than 30% from their highs.
- We explain the key stocks to buy like PayPal and Affirm.
2021 has been a difficult year for fintech companies. After experiencing spectacular growth a few years ago, most of them have dropped by double digits from their year-to-date high. So, here are some of the best fintech stocks to buy in December 2021.
Shift4 Payments (NYSE: FOUR) is a small fintech company valued at more than $4.3 billion, The company offers point-of-sale products and other payment processing solutions to thousands of companies in the United States. It mostly serves companies in the food and beverage, travel and hospitality, sports and entertainment, and e-commerce industries.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
The Shift4 Payments stock price has crashed by more than 50% from its highest point this year and is currently trading at the lowest level since November last year. This performance is mostly because analysts are concerned about its slowing growth and the rising competition from the likes of PayPal and Square.
Still, I believe that Shift4 Payments is an excellent stock to invest in because it is currently oversold. The company is also seeing strong growth and has more room to grow. Analysts expect that it will grow by more than 35%. It is also a good acquisition target by bigger companies.
PayPal (NASDAQ: PYPL) is one of the biggest fintech companies in the United States with a market cap of more than $210 billion. For years, the PayPal stock price has been in a strong upward trend as investors cheer its growth potential.
Indeed, the company has managed to accumulate more than 420 million customers from around the world. It has also expanded its services in other areas like coupons, cryptocurrencies, and business payment processing.
However, analysts believe that the era of quick growth is coming to an end. This has caused the stock to decline by more than 38% from its highest level this year. Still, I believe that this drop is heaven sent and that the stock will ultimately bounce back.
The Buy Now, Pay Later (BNPL) industry is changing the world by changing how many people shop. The industry allows people to buy products online and in stores and then pay in equal instalments without any interest. Before BNPL, most people used credit cards, which are often significantly expensive.
Affirm (NASDAQ: AFRM) is one of the biggest players in the industry. It has a market cap of more than $26 billion. This makes it the third-biggest firm in the industry after Klarna and AferPay. The Affirm stock price has declined by more than 36% from its all-time high. Still, I expect that it will rebound as the industry becomes more popular.