The United States economy’s second-quarter growth was slightly slower than expected at 2.1%, a favorable development for the Federal Reserve’s goal of curbing rising prices. There is a lasting positive outlook, with inflation trending downwards and GDP growth signs as the Federal Open Market Committee (FOMC) has aimed to achieve a 2% inflation target without a recession or widespread job losses. Despite all of that, there are still some promising financial technology AKA fintech stocks to own now.
Irrespective of economic fluctuations, the U.S. stock market has demonstrated remarkable resilience. According to data from Refinitiv Lipper, 81% of the 292 companies within the Standards & Practices (S&P) 500 have unveiled impressive second-quarter outcomes and outperformed analyst earnings forecasts. Furthermore, there is an anticipation of a 2-3% increase in the S&P 500 throughout September, potentially propelling it to reach the $4,600 milestone. This applies specifically to fintech stocks because the industry is gaining more and more relevance. These three fintech stocks to own are going to soar in growth, and it is your time to buy in on these.
Global Payments Incorporated (GPN)
Global Payments Incorporated (NYSE:GPN) is a fintech company that provides payment technology and services to small and medium-sized businesses.
GPN stock is up 21.47% YTD. The financial tech market is worth $133.84 billion in 2022 and is projected to be $556.58 billion by 2030 from a CAGR of 19.50%. The company reported PYQ2 revenue of $2.20 billion, up 7.01% YoY while focusing on expanding operator margins. EPS further was reported at $2.93, followed by an FCF yield of -28.82% due to outstanding performance in the two years prior.
Global Payments is partnered with many notable brands, such as Apple Pay and Shopify. Earlier this year, the company acquired EVO Payments, a large payment processing company, to expand into the business-to-business space. The acquisition also gave Global Payments access to markets in other nations including Poland, Germany, Chile and Greece. This helps to strengthen its presence in previously established markets such as the U.S., Canada and the United Kingdom. Global Payments has also partnered with the Atlanta Braves and Atlanta Hawks, becoming the official “Commerce Technology Provider” for Truist Park and State Farm Arena. The partnership will provide a better customer experience relating to ticket, merchandise, and concession sales. This announcement accompanies a similar partnership in 2021 with Mercedes-Benz Stadium, home of Atlanta United FC and the Atlanta Falcons. These commitments from Global Payments will support the general public of Georgia.
Yahoo! Finance reports 34 analysts, 26 of which give the stock a buy rating. The mean one-year price target is $144.48, ranging from $97.00 to $211.00. Global Payments is a stock that has been showing strong growth and still provides a lot of potential in the coming years.
Visa (V)
Visa (NYSE:V) facilitates global e-commerce through digital payments and information. This company is most commonly known for Visa-branded credit cards, debit cards and prepaid cards. Furthermore, V stock is up 17.57% YTD.
Visa recently extended its partnership with Conferma Pay by four years in order to further develop Visa Commercial Pay, a suite of B2B payment solutions. Collaborating with the world’s foremost provider of virtual card technology will allow Visa to strengthen its hold in a new part of fintech. Visa also just signed a definitive agreement to acquire Pismo, which will equip Visa with core banking and issuer processing capabilities across a range of payment types.
Pismo’s system is also set up to offer Visa support and connectivity for emerging payment rails, such as Pix in Brazil. Visa also extended its partnership as the exclusive payment services partner of the U.S. Women’s and Men’s National Soccer Teams. This is taking advantage of the rising popularity of soccer in the United States. Lastly, Visa was the partner of the recent FIFA Women’s World Cup, a powerful opportunity to increase exposure and improve brand lift.
Yahoo! Finance reports 37 analysts with a mean one-year price target of $278.38, ranging from $220.00 to $336.00. 35 out of 39 analysts have rated Visa as a buy or higher, with 13 giving the company a “Strong Buy” rating.
Fintech is a strong industry to be in right now, with the industry projected to grow at a 29.54% CAGR through 2030, from $245 billion in 2023 to $1.5 trillion in 2023. With Visa’s strong financials and array of growth catalysts, it is poised for growth within this industry.
Alkami Technology Incorporated (ALKT)
Alkami Technology Incorporated (NASDAQ:ALKT) is a leading cloud-based digital banking solution provider for financial institutions. The company helps clients transform through business banking, multi-payment fraud prevention, and data analytics.
ALKT stock is up 18.39% YTD. Revenue of the Computer and packaged Software Wholesaling industry has grown at a CAGR of 1.3% to $380.6 million throughout the past five years, including 4.5% in 2023 alone. Quarterly financials are also strong, for revenue of $65.76 million grew 30.15% YoY which beat analyst expectations by 4.20%, and diluted EPS of -0.19 grew by 13.64% which beat analyst expectations by 43.09%.
The most significant move made by Alkami that will affect its future growth in financials, is its development and launching of the Engagement AI Model via its AI Predictive Modeling solution on August 9th. This Engagement AI Model consists of AI, ML, and Alkami’s proprietary Key Lifestyle Indicators (KLIs). It empowers financial institutions to identify account holders who demonstrate behaviors most likely to lead to retention and account growth and increase engagement with products, service offerings, and digital channels.
Yahoo! Finance reports 10 analysts having a mean 12-month price target of ALKT stock to reach $20.70, with the range spanning from as low as $19.00 to as high as $23.00. Now is the time for you to purchase AKLT stock before the introduction of the Engagement AI Model gets the recognition it deserves in the foreseeable future.
On the date of publication, Michael Que did not have (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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
