The global shift toward cashless transactions has a tremendous impact on the fintech business. As customers prefer digital payment options, fintech companies are coming in to provide secure and efficient payment solutions, hence fueling industry growth.Thus, investors could consider adding fundamentally sound fintech stocks, Visa Inc. (V), PayPal Holdings, Inc. (PYPL), and Jiayin Group Inc. (JFIN), reshaping digital payments.The growing need for digital financial services is a key driver of the fintech market. According to the World Bank, over 1.7 billion adults globally are still unbanked, emphasizing the need for accessible financial services. The fintech market is projected to grow at a CAGR of 14% by 2031.The digital payment market consists of platforms and technologies that enable electronic transactions. This market is expanding rapidly due to the rise of e-commerce, mobile payments, and fintech solutions. Due to convenience and the growing trust in secure, cashless systems, businesses and consumers are shifting to digital payment methods.Considering these factors, let’s take a look at the fundamentals of the three fintech stock picks.Visa Inc. (V)V is a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. On January 23, 2025, V made strategic investments in Moniepoint Inc., one of Nigeria’s leading business payments and banking services platforms. The investment marks an important milestone in Visa’s commitment to advancing financial inclusion and shaping the future of digital payments while fostering SME growth across Africa.V’s 97.82% trailing-12-month gross profit margin is 67.1% higher than the 58.53% industry average. Furthermore, the stock’s 54.27% trailing-12-month net income margin is 142.1% higher than the 22.41% industry average.During the fiscal 2025 first quarter that ended on December 31, 2024, V’s net revenue increased 10.1% year-over-year to $9.51 billion. Its non-GAAP net income and non-GAAP EPS were $5.46 billion and $2.75, up 10.6% and 14.1% year-over-year, respectively.Analysts expect V’s revenue to increase 8.8% year-over-year to $9.55 billion, accompanied by a projected 6.8% year-over-year rise in EPS to $2.68 for the fiscal quarter ending March 2025. Moreover, the company has surpassed consensus EPS estimates in each of the trailing four quarters, which is impressive.The stock has gained 19.3% over the past three months to close the last trading session at $345.15.V’s POWR Ratings reflect its positive outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.The stock has a B grade for Sentiment, Momentum, Stability, and Quality. V is ranked #7 out of 48 stocks in the Consumer Financ
Mer. Feb 5th, 2025
