Have you ever gone to the bank and stood in line for hours to complete your transaction? Or have you spent hours going to payment centers or meeting someone to conduct business? The old ways of performing financial transactions are time-consuming and will simply not do in this fast-paced, Internet-dependent environment. Technology, however, has kept pace with our developing needs, and new companies are providing faster, more efficient, and more reliable means of transacting — and the Fintech sector is spearheading this initiative.
What is Fintech?
Fintech is a sector which that primarily combines finance and technology as a single solution using computer programs, APIs, and various platforms. Fintech has been one of the most disruptive sectors in recent times. It gave unserviced sectors access to traditional banking with multiple solutions to efficiently conduct business, capital options via peer-to-peer lending, as well as other systems of credit. The great thing is that the sector still has room for growth, with experts expecting it to grow by 27.4% annually through 2029.
Fintech’s development is giving investors choices for potential future winners to add to their portfolios.
With that said, let’s look into some buy-rated Fintech companies right now.
Intuit Inc. (INTU)
Intuit Inc. is a financial technology firm that offers financial management and compliance products and services to small businesses, consumers, and self-employed customers. INTU’s operations focus on four key segments:
- Consumer
- Credit Karma
- ProConnect
- Small Business & Self-Employed
INTU’s services offer products like QuickBooks for accounting professionals advising self-employed entrepreneurs and businesses. The company also offers payroll solutions, time tracking, merchant payment processing solutions, TurboTax for income tax preparation, and a platform for personalized insurance products, credit cards, and loans.
Analyst Rating
Analysts rate INTU as a “Strong Buy” based on 19 Strong buys and 4 Hold recommendations. The mean target price for INTU is $496.45, and the high target price is $550, an upside of 9.67%.
Fidelity National Information Services (FIS)
Fidelity National Information Services, Inc. is a technology solution provider catering to financial institutions and businesses. FIS operates in three main segments:
- Merchant Solutions (Merchant)
- Banking Solutions (Banking)
- Capital Market Solutions (Capital Markets)
Fidelity’s product offer services that help its clients conduct payment transactions for merchant clients. Fidelity’s banking clients, on the other hand, are offered transaction processing, core processing software, and complementary application. Fidelity offers recordkeeping, treasury financing, data and analytics, and securities processing solutions for institutional clients.
Analyst Rating
Analysts rate FIS as a ”Moderate Buy” based on 14 Strong buys, 1 Moderate buy, 8 Holds, and 1 Strong sell. The mean target price is $71.10, and the high target price is $86.00, with an upside of over 50%.
Cantaloupe Inc. (CTLP)
Cantaloupe, Inc., previously USA Technologies, is a fintech company that delivers point-of-sale and payment solutions for unattended retail outfits like vending assemblies, amusement, arcades, commercial laundries, etc. CTLP offers self-service commerce, payments processing, inventory management solutions, pre-kitting, route logistics, warehouse, and back-office systems management in a single platform. The company has two notable hardware products for the retail segment: ePort, a line of integrated card reader and telemeter devices, and the Yoke Mobile Point-of-Sale System.
Analyst Ratings
Analysts rate Cantalope Inc as a “Strong Buy” based on 3 Strong buy recommendations from analysts. The mean target of CTLP is $9.33, and the high price is $10.00, an upside of 37.4%.
Final Thoughts
Technology has always been one of the main drivers of a growing economy, and fintech has been one of the more recent revolutionary technologies to proliferate in the market. It offers consumers and businesses an easier way to make payments, invest, and process other transactions. The sector is still growing, disrupting established industries while providing innovative solutions to financial requirements. But always remember to conduct your due diligence to ensure you make informed decisions before jumping into any investment.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
