5 Fintech Stocks to Watch Out Amid Coronavirus Crisis
The coronavirus pandemic disrupted supply chains and hampered economic growth. And in order to curb its impact on the economy, the government implemented a stay-at-home order. This has facilitated fintech firms as digital payments are taking precedence over cash purchases amid lockdown.
Moreover, an emerging trend in financial services has been observed with banking, investing, and payment applications gaining popularity.
Factors Propelling Fintech
Per a research by deVere Group, coronavirus drove a massive 72% rise in the use of fintech application in Europe as of Mar 30. In fact, the rise has been constant throughout the globe, even if the figures are not same.
From application ofmortgage to making electronic payments, fintech has been helping people do things remotely for long. With cities and businesses under lockdown, the industry has made its importance felt even more.
There has been a significant rise in digital payments as people purchased essential goods and other services online or made contactless payments in person to receive deliveries. Avoiding cash transactions plays a role in curbing the spread of the deadly virus.
Treasury Secretary Steven Mnuchin, for the first time in history specified that “any fintech lender will be authorized to make these loans.” This helped lending applications to trend up even more. Banks can now allow short-term loan through their digital platform and customers get the money in just a few clicks.
Another factor that has boosted the fintech space is the inaccessibility to bricks-and-mortar bank branches. Several regions specifically those marked red zone have been forced to keep bank branches closed, compelling customers to use the application.
Fintech companies also assist in digital stock trading. And thanks to the coronavirus-induced market volatility, more people are keeping an eye on stocks. Thus, mobile fintech's continued growth is certainly assured.
Investors might claim that these factors have temporarily boosted the fintech space and once coronavirus dissipates, its demand may subside. But several researchers and analyst believe that as the economy steadies itself or bounces back, the fintechs that make banking more efficient will also keep growing as it makes banking and other financial services easier for customers.
Per the IndustryArc’s market analyst report, demand for FinTech services is estimated to witness an astonishing CAGR of 25% to 30% during the forecast period of 2019 to 2025.
5 Stocks in Focus
Given the sharp increase in the use of fintech amid the global health crisis and economic downturn we have shortlisted five stocks that are poised to grow. The stocks carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
PayPal Holdings, Inc. PYPL operates as a technology platform and digital payments company. The company’s expected earnings growth rate for the current year is 7.7% compared with the Zacks Internet - Software industry’s projected earnings growth of 2.8%.
Fidelity National Information Services, Inc. FIS operates as a financial services technology company. The company’s expected earnings growth rate for the current year is 1.1% against the Zacks Financial Transaction Services industry’s projected earnings decline of 5.3%.
Global Payments Inc. GPN provides payment technology and software solutions. The company’s expected earnings growth rate for the current year is 1.5% against the Zacks Financial Transaction Services industry’s projected earnings decline of 5.3%.
Square, Inc. SQ provides payment and point-of-sale solutions. The company’s expected earnings growth rate for the current quarter is 18.2% compared with the Zacks Internet - Software industry’s projected earnings growth of 4.4%.
Intuit Inc. INTU provides financial management and compliance products and services. The company’s expected earnings growth rate for the current year is 12.3% against the Zacks Computer - Software industry’s projected earnings growth of 1.9%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Global Payments Inc. (GPN) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Square, Inc. (SQ) : Free Stock Analysis Report
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