Chicago, IL – February 12, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include like Visa Inc. V, PayPal Holdings Inc. PYPL, American Express Co. AXP, Affirm Holdings Inc. AFRM and Fidelity National Information Services Inc. FIS.Financial technology (fintech) represents a transformative investment space in a hybrid sector merging finance and technology. The companies featured in the space encompass a variety of services, such as online banking, peer-to-peer payments, insurance, cryptocurrency and cybersecurity, among others.They are relevant because they streamline financial services, apart from enhancing efficiency and security through innovations like mobile banking, online investing and payment processing.The financial technology space is expected to benefit from expanding transaction volumes resulting from the widespread adoption of digital means. The growing digitization movement, triggered by the pandemic, is a major catalyst for this industry.Here we recommend five fintech stocks with a favorable Zacks Rank to invest in and hold for the long term. These are Visa Inc., PayPal Holdings Inc., American Express Co., Affirm Holdings Inc. and Fidelity National Information Services Inc.The performance of the fintech space is inversely related to the movement of interest rates. In the last three years, fintech companies borrowed at a higher interest rate. This significantly affected their technological improvement and product innovation, a key to the success of this space.Nevertheless, the Federal Reserve reduced the benchmark interest rates by 1% in 2024 to the range of 4.25-4.5%. The CME FedWatch interest rate derivative tool currently shows more than 50% probability of two more rate cuts of 25 basis points each in the second half of 2025. A lower interest rate regime will immensely benefit fintech companies.Fintech’s innovative nature positions it as a fascinating choice in the evolving financial landscape. With the expansion of mobile and broadband networks, fintech is poised for significant growth. Consumer behavior is shifting toward digital platforms, fueled by convenience and cost-effectiveness. Fintech’s adaptability to changing technological needs and its ability to meet diverse consumer demands underpin its robust future.The rise of artificial intelligence (AI) technologies and machine learning further revolutionizes banking, payments, and investments, offering efficient and secure financial solutions. Fintech companies offer exposure to a pioneering space that is redefining personal finance.These five financial technology stocks have strong revenues and earnings growth potential for 2025. Moreover, these stocks have seen positive earnings estimate revisions over the past 30 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) o
Mer. Feb 12th, 2025
