Investing in fintech stocks can take you from a six-figure portfolio to a seven-figure portfolio. By investing carefully and focusing on long-term results, you can make a difference in your financial wealth.
Diversifying your portfolio across different sectors reduces risk and allows for more growth opportunities. Several major companies operate in the fintech industry and reward long-term investors. These are some of the fintech stocks that can boost your portfolio into seven figures.
Visa (V)
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visa (New York Stock Exchange:V) has been in existence for over 65 years. The company is a leader in the credit and debit card industry and accounts for a small percentage of all transactions. These transaction fees were added up and Visa's first quarter 2024 revenue was reported at $8.6 billion. This is a 9% improvement compared to the previous year. GAAP net income reached $4.9 million, an increase of 17% year over year.
The company also initiated stock buybacks and dividend distributions valued at $4.4 billion during the quarter. This dividend program is promising for long-term investors thanks to its impressive growth rate. Visa recently raised its quarterly dividend from $0.45 per share to $0.52 per share, an increase of 15.6% from a year ago.
Analysts still believe the stock has further gains ahead. The average price target of 23 analysts suggests an upside of 8.6%. Visa stock is rated a “strong buy” and has a high price target of $326. Visa's high margins and continued growth could lead to further gains.
American Express (AXP)
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american express (New York Stock Exchange:AXP) is another top credit and debit card issuer on our watch list. This fintech company's 1.30% dividend yield and recent 17% dividend increase make it an attractive dividend growth stock. The stock is up 36% in the past year and has doubled in the past five years.
The company offers a healthy combination of rising stock prices, growing dividends, and financial strength. Consumer spending remained high, resulting in sales growth of 11% year-on-year. Net income for the fourth quarter of 2023 increased 23% year over year.
American Express has established full-year guidance that suggests revenue will increase 9% to 11% year-over-year and net income will increase mid-teens year-over-year. Management expects to maintain these growth rates for several years. AXP stock trades at a forward P/E of 17x, providing a good margin of safety considering the company's growth and runway.
Sophie (SOFI)
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SoFi (NASDAQ:Sophie) is a notable fintech stock that has shown volatile price movements since its IPO. The stock is up 29% over the past year, down 32% since its IPO, and down 27% since the beginning of the year. This stock has seen his 3% price movement in either direction for many days.
You can also check volatility by looking at analyst opinions. 16 analysts rate the stock as a “hold”. 4 analysts recommend “buy” and another 4 analysts recommend “sell”. The remaining eight analysts rated the stock a “hold.” The stock's average price forecast is for an increase of 29%.
The high price target is $15 and the low is $3. The high price target suggests the stock will rise more than 2x, while the low price target suggests the stock will fall another 50%.
Investors may want to consider this stock due to its consistent revenue growth and recent improvement in profitability. The company reported a 35% year-over-year increase in revenue for the fourth quarter of fiscal 2023.
An additional 585,000 people joined SoFi in the fourth quarter, so the online bank now has 7.5 million members. The number of new members added in Q4 2023 was 44% higher than the number of new members added in Q4 2022. Net income was $47.9 million, compared with a net loss of $40 million in the year-ago period.
On the date of publication, Mark Guberti did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
