Fintech stocks are likely bottoming out as we speak. The technological advancement of fintech is undoubtedly a great example of all the efforts being made by the companies participating in this sector to facilitate and streamline all the financial processes we perform day after day, both payments of everything we consume or use in our daily routine, as loans or any other financial transaction, whether personal or business. Here are three top fintech Stocks that are making incredible movements with substantial growth, which can allow us to obtain considerable gains by including them in our portfolio. Let’s take a look.
Fintech Stocks: Intuit (INTU)
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What makes Intuit (NASDAQ:INTU) particularly attractive as a financial technology stock to investors is its recent introduction of QuickBooks Money, an all-in-one banking and payments solution designed for small businesses.
A standout feature of QuickBooks Money is that it charges no monthly fee and requires no minimum balance. This means it allows small business owners to have complete control of their finances from anywhere, which can be a game changer for many entrepreneurs.
Intuit has been on a positive trajectory in terms of its financial results. In the fourth quarter, the company posted a 12% growth in total revenue to $2.7 billion. Revenue from the Small Business and Self-Employed Group increased by an impressive 21% to $2.1 billion.
Revenue from the Online Ecosystem, another critical segment, also grew by 21%. However, it should be noted that Credit Karma revenues experienced an 11% decline, and Consumer Group revenues fell by 12%.
In addition to their product innovations, they are making strategic financial moves. The company recently announced a senior notes offering totaling $4 billion. This offering comprises different maturity dates and interest rates, including 5.250% notes due 2026, 5.125% notes due 2028, 5.200% notes due 2033, and 5.500% notes due 2053.
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MercadoLibre (NASDAQ:MELI), the Latin American e-commerce giant, is a company that has given a lot to talk about. Why? Because it has been growing by leaps and bounds and diversifying into areas such as finance and insurance. That’s just the tip of the iceberg about why I think this is one of the best fintech stocks.
Imagine a place where you can buy and sell almost anything online, like Amazon (NASDAQ:AMZN) or eBay (NASDAQ:EBAY), but focused on Latin America. It connects sellers and buyers, facilitating all kinds of transactions. But it doesn’t stop there.
Its growth is impressive. Their net revenues reached $3.4 billion, up 57.2% over the previous year. This shows that they are conquering a growing market in Latin America. They are also profitable, with operating income of $558 million and a healthy margin of 16.3%.
Their digital payments platform, Mercado Pago, is a gem. They handled a total payment volume of $42.1 billion, almost double the previous year! This shows their strength in the fintech world.
The latest in their portfolio is the insurance business. In less than four years, they attracted five million customers. This is due to solid investments in technology and a focus on the needs of low- and middle-income users, who often lack access to essential insurance.
In the latest quarter, its net earnings increased a staggering 113% to $261.9 million due to higher sales volume and user growth. In the fintech sector, they added 7.1 million new users in the last year, reaching an active base of 45.3 million users.
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LendingTree (NASDAQ:TREE) is a prominent player in the financial technology space, and it’s a stock worth following this fall. Imagine it as your go-to online marketplace for financial services in the U.S., like a virtual financial mall where you can find loans, insurance, credit cards, and more.
Recently, they reported their financial situation. They earned a substantial $182.5 million in revenue, like their payroll. However, after covering all their bills, they ended up with a slight net loss of $0.1 million or $0.01 per share, which shows they are working on their financial health.
Their marketing efforts paid off, as they pocketed $76.5 million after accounting for marketing expenses. Their adjusted net income per share of $1.14 indicates a positive financial outlook. In addition, their adjusted EBITDA of $26.7 million suggests that they effectively manage their day-to-day operations.
Most interesting is their recent move: repurchasing $190 million of their convertible bonds. This signifies their dedication to improving their financial structure. They have disbursed $156.4 million in cash for this, a part of a strategy to optimize their financial situation. They are also modifying some financial agreements, which could lead to the sale of some shares in the market. However, it still remains among the best fintech stocks, in my opinion.
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.
Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.
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