Are These The Best Cheap Fintech Stocks To Buy Now For 2022?
For investors looking to jump on the current recovery trends in the tech space, fintech stocks could be worth considering. After all, this area of the stock market today is, arguably, becoming an increasingly relevant and vital global sector. Even so, most of the top names in the sector have experienced turbulence from the recent rotation out of growth stocks earlier this year. This alongside the initial hype from fintech’s pandemic viability leaves fintech stocks in a unique position. Sure, like most growth sectors, fintech stocks would experience pressure from rising interest rates. However, consumers across the globe heavily rely on these services now. As such, some would argue that the industry could be a defensive play as well.
On top of all that, there is plenty of activity in the fintech space now as well. For instance, consumer tech giant Apple (NASDAQ: AAPL) is growing its fintech solutions significantly now. As of yesterday, the company is officially launching Tap to Pay. In a nutshell, Apple iPhones are now essentially point-of-sale terminals where users only need to tap their phones to make payments. Through Tap to Pay, iPhone owners can now make contactless payments via Apple Pay and Stripe. Moreover, Apple also notes that Shopify’s (NYSE: SHOP) point-of-sale system will also support the feature this spring.
At the same time, conventional fintech players such as Visa (NYSE: V) remain hard at work as well. As of late last month, the company is now collaborating with Pagaya, a global artificial intelligence (AI) infrastructure firm. Through this team-up, Visa aims to provide its clients with “next-generation technology” to bolster their operations overall. With all of this in mind, here are three top fintech stocks to watch in the stock market now.
Top Fintech Stocks To Buy [Or Sell] Today
- NCR Corporation (NYSE: NCR)
- Block Inc. (NYSE: SQ)
- PayPal Holdings Inc. (NASDAQ: PYPL)
NCR Corporation
For starters, we have NCR Corporation, a financial technology, and services company. It manufactures self-service kiosks, point-of-sale terminals, and automated teller machines among others. Being a leader in consumer transaction technologies, it has over 130 years of experience in running self-directed banking. On Tuesday, the company reported its full-year and fourth-quarter financials for 2021.
Diving in, NCR posted a full-year revenue of $7.16 billion, increasing by 15% compared to a year earlier. Recurring revenue enjoyed a growth of 25%. It also posted a full-year non-GAAP diluted earnings per share of $2.56. The company expects 2022 to be another year of strong revenue growth, with significantly higher profitability. For the full year 2022, it forecasts a revenue of $8 billion to $8.2 billion while non-GAAP diluted earnings per share will be from $3.25 to $3.55. It also expects to have a free cash flow of $500 million to $600 million.
“Our fourth-quarter results marked a solid finish to a terrific year for NCR. We simultaneously drove strong growth in recurring revenue, higher profitability, and increased cash generation,” said Michael Hayford, Chief Executive Officer. “We made tremendous progress integrating Cardtronics and transforming NCR into a software platform and payments company.” The company also launched a comprehensive strategic review to enhance value for its shareholders. This strategic review would include a disposition of a material business or assets of the company or a spin-off. Given this piece of news, is NCR stock worth investing in?
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Block Inc.
Block or formerly Square is a financial services and digital payments company. Square helps sellers run and grow their businesses with its integrated ecosystem of commerce solutions, business software, and banking services. Its Cash App on the other hand is focused on allowing users to transfer money from one another.
Last week, the company received an Overweight rating from J.P. Morgan (NYSE: JPM) analyst Tien-Tsin Huang. This comes after Block had closed its acquisition of Buy Now, Pay Later (BNPL) financing firm, Afterpay. This would be Block’s biggest purchase to date. Furthermore, the integration will enable Square sellers to offer Afterpay’s BNPL experience to their customers, helping them attract new shoppers and drive incremental revenue.
Over 50% of American consumers have used a BNPL service and the fastest-growing consumer segments, Millennials, and Gen-Z comprise of 75% of BNPL users. The company says that Square sellers can now serve this growing consumer demand all around the globe. Afterpay will also further Square’s omnichannel, upmarket, and global growth. The company will also be announcing its fourth quarter and full-year 2021 financial results. With that in mind, is SQ stock worth buying right now?
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PayPal Holdings Inc.
Last but not least, we will be taking a look at PayPal. By and large, most would be familiar with this titan in the fintech industry today. Through its massive network of operations, PayPal operates in over 200 global markets, serving over 425 million consumers. From digital transactions to crypto and business-related financial services, PayPal does it all. In a time when people are relying on fintech services more than ever, PYPL stock could be worth noting.
For one thing, PayPal is not sitting idly by on the operational front as well. As of yesterday, the company is making yet another play to bolster its crypto-related offerings. Namely, PayPal now has an advisory council, supporting its crypto solutions. With its new Blockchain, Crypto, and Digital Currencies council at work, the company is looking to create a digital financial system. In the current line-up, PayPal currently has some of the world’s leading experts in cryptography, distributed tech, regulation, and economics.
All in all, this would go to show that PayPal is serious about its push into the crypto space. Accordingly, this would be in line with the current shift in consumer interests towards digital assets today. Despite all this, PYPL stock continues to feel the pressure following PayPal’s lackluster earnings report last week. Sure, the company provided conservative forecasts for the current fiscal year in its latest earnings call. However, CEO Dan Schulman does note that “revenue should accelerate in the second half of the year.” As such, would you consider adding PYPL stock to your portfolio today?
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