The Top 7 Fintech Stocks to Buy Now: Summer 2024

Industry Overview - The fintech industry is projected to maintain a compounded annual growth rate of 16.5% from now until 2032, indicating strong growth potential for investors [1] Company Summaries Nu Holdings (NU) - Nu Holdings is a Brazilian digital bank that recently surpassed 100 million customers, with shares up 53% year-to-date and a P/E ratio of 48 [2] - The company reported 69% year-over-year revenue growth in Q1 2024, with net income soaring by 167% year-over-year, resulting in a net profit margin of 13.8% [2] - Wall Street analysts suggest a 17% upside from current levels, with the highest price target indicating a potential 29% gain [2] Robinhood (HOOD) - Robinhood shares are up 71% year-to-date, driven by a 40% year-over-year revenue growth in Q1 [3][4] - Revenue from crypto transactions increased by 232% year-over-year, reaching $126 million, constituting over 20% of total revenue [4] - The company reported a net income of $157 million compared to a net loss of $511 million in the same period last year [4] American Express (AXP) - American Express reported Q2 2024 revenue of $16.3 billion, an 8% year-over-year increase, with net income growing 39% year-over-year to $3.02 billion [5][6] - The stock has increased by 31% year-to-date and offers a 1.14% yield, with a history of double-digit dividend growth [6] SoFi (SOFI) - SoFi reported a 37% year-over-year revenue increase in Q1, with profits of $88 million compared to a net loss of $34.4 million in the same period last year [7][8] - The company has 8.1 million active members, a 44% year-over-year improvement, and analysts suggest a potential 10% to 62% gain from current levels [8] Morningstar (MORN) - Morningstar shares are up 18% year-to-date, with a 57 P/E ratio and a recent 8% year-over-year dividend increase [9] - Q2 revenue increased by 13.3% year-over-year to $571.9 million, with diluted net income per share soaring by 90.5% year-over-year to $1.60 [9] Moody's (MCO) - Moody's shares are up 18% year-to-date, with a 44 P/E ratio and a 0.76% yield [10] - Q2 revenue increased by 22% year-over-year to $1.8 billion, with adjusted diluted EPS rising by 43% year-over-year to $3.28 [10][11] Visa (V) - Visa reported 10% year-over-year revenue growth in Q3 2024, with net income jumping 17% year-over-year to $4.9 million [12] - The stock is rated as a Strong Buy, with an average price target suggesting a 22% gain from current levels [12]