The financial sector is undoubtedly one of my favorite sectors. I have always considered it as a completely indispensable sector, not only in the capital markets but in our day-to-day life. We will always use money because we make financial transactions every day to eat, buy trinkets or pick up gifts and necessities — absolutely everything. Within this sector, there are companies responsible for making the consuming processes much easier and more efficient, leveraging data collection, technology and artificial intelligence — among many other tools. Here, I bring you three financial stocks to watch and consider adding to your portfolio.
Equifax (EFX)
Think of Equifax (NYSE:EFX) as a giant library of financial information. The business collects data on people and companies, creating financial histories. Equifax’s job is to collect information on loans, credit cards and other monetary matters.
What makes Equifax stand out? Well, let’s take a look at the numbers. In the second quarter of 2023, they brought in about $1.318 billion. While the company didn’t grow much compared to last year, it held steady — even when the home loan market was a bit sluggish.
In 2023, EFX did something very interesting. It spent less on cloud technology, which saved the company a lot of money. Equifax also got creative with its cloud technology, creating new products and solutions. And the business didn’t stop there. It helped companies hire new staff and expand around the world.
On top of that, EFX acquired a Brazilian company called Boa Vista Serviços. That company was like a Brazilian version of Equifax. The deal cost them about $640 million. The purchase will give Equifax more clout in Brazil and allow Boa Vista Serviços’ clients to leverage global intelligence.
They have also created a kind of school score for small businesses. It’s called OneScore for Commercial. The product uses data from over 33 million businesses with their own credit information to assist other businesses — particularly start-ups and small businesses. The data helps those companies show their creditworthiness to banks when they need loans to grow.
PayPal Holdings (PYPL)
Moving on to PayPal Holdings (NASDAQ:PYPL), the company is like a digital wallet for fast and secure online shopping, paying bills and exchanging money. The company even allows you to make transactions with financial instruments as sophisticated as Bitcoin (BTC-USD).
In the second quarter of 2023, PayPal did great. It moved about $376.5 billion in payments, up 11% from last year. The company pocketed $7.3 billion in revenues — up 7%. PYPL’s operating income soared 48%, and its earnings per share got a nice boost.
And if that wasn’t enough, the business also launched a new currency, PayPal USD (PYUSD). This currency is like digital cash, backed by real U.S. dollars and government securities. Therefore, it is safe and stable for online shopping. You can exchange PYUSD for real dollars, 1 to 1.
On top of that, PYPL started with the Venmo Small Business Grant program. The company is handing out cash to small businesses to help them grow. But PayPal doesn’t stop at money. It also offers legal services, money guidance and digital marketing advice. The business’ goal is equity and building a win-win economy.
Intuit (INTU)
And finally, we present Intuit (NASDAQ:INTU), the big name in money technology. The company is famous for TurboTax, Credit Karma, QuickBooks and Mailchimp. Intuit is dedicated to making most things related to money easier for people and businesses.
In the last quarter, the business grossed 12% more, reaching $2.7 billion. The most incredible thing was a 21% increase in Small Business and Self-Employed Group cash — the same for its Online Ecosystem. However, Credit Karma revenue fell 11% and Consumer Group fell 12%.
In addition, Intuit is expanding its technology stack with its own Generative Artificial Intelligence (AI) operating system (GenOS). The product is like a toolkit with intelligent monetary models trained to manage tax, accounting, marketing, cash flow and personal money matters.
GenOS enables its tech geniuses to create sophisticated monetary technologies at high speed. INTU is changing the dial on its products and services to address your biggest money problems. That’s why people think of Intuit as a gold coin in the money and technology game. The company is growing steadily and solving problems, a wonderful choice for smart money moves.
As of this writing, Gabriel Osorio-Mazzilli 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 writer, subject to the InvestorPlace.com Publishing Guidelines.
