The fintech sector is abundant with companies that continue to play a significant role in how we bank, transact, and invest. Amidst the buzz surrounding these companies, the largest industries players remain the most underappreciated fintech stocks to buy.
It becomes extremely easy to overlook well-established players in the fintech space that possess extraordinary long term potential. This is because they have grown so large that investors often believe that they’ve ‘’missed the move.’’ However, that couldn’t be further from the truth with the tailwinds that will continue driving growth over the next decade. These compelling investment opportunities can offer life-changing returns for those who stay the course.
Now, here are the top underappreciated fintech stocks to buy in 2024 and beyond!
Mastercard (MA)
Mastercard (NYSE:MA) should need no introduction when considering the top undervalued fintech stocks. They’re one of the most notable brands in the global payments industry, and are set to benefit tremendously from the growth of cross-border payments.
Mastercard’s established position in payments provides a solid foundation for growth. With a vast network spanning across various countries and partnerships with major financial institutions, Mastercard enjoys a significant competitive advantage. If you’re reading this article right now, there is a strong likelihood that you own a Mastercard credit card. This is how powerful their brand is and how far their reach goes across the globe. The company has continued its momentum in the first quarter of 2024, after delivering record results in the 2023 fiscal year. In Q1 FY24, revenue increased 10% YOY to $6.35 billion, with EPS up 30% YOY to $3.22 per share. Moreover, cross-border transactions grew 18% from the year prior. As Mastercard continues to drive its digital payments platform, investors should certainly keep it on their radar in 2024.
Fiserv (FI)
Fiserv (NYSE:FI) might just be one of the most undervalued fintech stocks to buy in 2024. The company operates behind the scenes, and is the technological backbone to banks and merchants.
Fiserv is unique in that their technology has a wide appeal. They provide a robust suite of solutions that cater to banks, credit unions, investment firms, and other financial institutions. This diversification not only mitigates risks but also positions the company to capitalize on emerging trends across various segments of the financial industry. Additionally, Fiserv’s strategic acquisitions and partnerships bolster its market position and expand its revenue growth capabilities. In their latest quarterly results, Fiserv grew its top line revenue 7% YOY to $4.88 billion. EPS skyrocketed 39% YOY to $1.24 per share, with operating margin remaining strong at 24.2%. Management has forecast revenue growth in the mid teens in 2024, and raised their FY24 EPS guidance to between $8.60-$8.75 per share. This makes Fiserv one of the most underappreciated fintech stocks to snap up in the month of May.
American Express (AXP)
American Express (NYSE:AXP) is a premium card issuer and payments network known for its exceptional customer service and rewards programs. While traditionally targeting affluent customers, American Express has been broadening its reach to the younger generations.
The past 3 years have been fantastic for American Express. After the company’s pandemic slump in 2020, their post-pandemic recovery has remained strong. American Express is up to date with the latest technological trends, and continues making key investments in AI, machine learning, and data analytics to enhance customer experiences, mitigate risks, and identify new business opportunities. However, management’s focus has zeroed in on the Millenial and Gen Z segments. This was a huge contributor to the company’s growth in 2023, as well as benefiting from higher interest rates in the U.S. economy. But their 60% YOY growth in customer accounts for this segment in the first quarter of 2024 is a tell tale sign of what’s to come. With management maintaining double digit revenue and EPS growth in 2024, AXP stock is one of the best undervalued fintech stocks to buy for life-changing returns.
On the date of publication, Terel Miles 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.
