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Financial services such as banking and payments are the core of the economy. If money doesn’t move through the system to make things happen, nothing happens. The financial sector is definitely a place to look for investment opportunities.
The best investment opportunities often come from buying promising companies whose stocks are trading at discounted prices. Some fintech stocks fit that description, and it’s easy to buy them. The best part? You can buy these fintech stocks for less than $200 all-in.
Today, I’m going to show you three fat stock pitches that are floating above home plate. Their potential above-market returns make them worth buying now, as they have the potential to be a home run.
1. New Holdings
In the United States, we may take for granted that people have access to banks to some extent, but people in Latin America don’t have that. An estimated 122 million people in Latin America are unbanked, meaning they don’t even have a basic bank account. This results in New Holdings (New York Stock Exchange: NU) An exciting investment opportunity. The company provides banking services to approximately 90 million people in Mexico, Brazil, and Colombia.
Wildebeests have great momentum. Over the past three years, his customer base has nearly tripled. Additionally, Nu has expanded its products and services. Revenues have increased significantly as more customers use more services. Revenue for the third quarter was $2.1 billion, an increase of 53% year over year.
Every growing company strives to reach a point where costs stop increasing and profits begin to increase. Nu’s business reached its critical standard in 2023. Net income for the third quarter brought him $303 million, up from just $8 million in 2022.
Despite Nu’s new rapid earnings growth, the stock trades at just 23 times forward earnings. If this performance continues, we believe Nu will soon outgrow its current valuation. There is no reason to think it cannot, given the opportunity to further penetrate the region’s banking services market. That makes it a stock worth buying today in hopes that impressive business results will eventually drive the share price higher.
2. PayPal Holdings
Established in the late 1990s, PayPal (NASDAQ:PYPL) It’s like an artifact in fintech. It was one of the first online payment networks and currently has approximately 430 million merchants and consumers with total payment volume reaching $1.5 trillion. Legacy companies can sometimes be ignored, especially in highly competitive fields. But PayPal’s long-term performance may be a testament to its competitive strength.
Market volatility and the impression that PayPal has been growing for a long time and cannot compete with new competitors have caused the stock to fall in recent years. The company began to address his second concern. In the fall, the company hired CEO Alex Criss. intuition. He is bent on making his PayPal a more profitable business and is strategizing how to rebuild the company in the payments field.
PayPal may still have to prove itself, but the business is generating a lot of value as it stands, and its compelling valuation makes the stock an easy buy eventually. is. The stock’s forward P/E ratio is just 11 times. Meanwhile, analysts expect the company’s long-term earnings growth to average 14%. A price-to-earnings ratio (PEG) of below 1 indicates that PayPal is a bargain based on its expected growth.
3.Shift4 payments
Companies can grow without being the biggest player in a competitive industry. Sometimes it’s important to find your area of expertise. shift 4 payment (New York Stock Exchange: 4) That’s exactly what we did. This payment company specializes in restaurants, entertainment, and hospitality. Consistent execution in these areas of expertise has increased Shift4’s settlement volume from $5.9 billion in Q3 2019 to $27.9 billion in Q3 2023, nearly an increase in four years. Increased by 5 times.
It can be difficult to make a profit in a competitive industry, but Shift4 is already doing well. The company generates free cash flow and net income, which translates into 2023 earnings per share (EPS) of approximately $2.91. Analysts believe the company’s profits will grow 45% annually over the long term. Look for Shift4’s continued expansion in its core markets and international expansion to drive its growth. The company acquired cross-border payments company Finaro to begin its expansion into Europe.
This stock is an example of a company whose future growth is undervalued. Shift4 has a forward P/E ratio of less than 20x and a PEG ratio of less than 0.5. In other words, Shift4’s long-term earnings growth is likely to be only half of what analysts expected, and the stock is still cheap at today’s prices. Unless something goes wrong with your business, there’s no reason investors won’t be excited about future investment returns.
Should you invest $1,000 in Nu now?
Before purchasing Nu stock, consider the following:
of Motley Fool Stock Advisor Our analyst team has identified what they believe Best 10 stocks Investors can buy now…and Nu was not one of them. These 10 stocks have the potential to generate impressive returns over the next few years.
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Justin Pope has no position in any stocks mentioned. The Motley Fool owns a position in Intuit and PayPal and recommends Intuit and PayPal. The Motley Fool recommends Nu and Shift4 Payments and recommends the following options: His March 2024 $67.50 short call on PayPal. The Motley Fool has a disclosure policy.
“3 No-Brainer Stocks to Buy With $200 Right Now” was originally published by The Motley Fool.
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