The Smartest Fintech Stocks to Buy With $500 Right Now

Core Insights - The financial services industry is crucial for the economy, encompassing both large banks and smaller fintech companies [1][2] Group 1: PayPal - PayPal is a leading digital payments company with 436 million active accounts and an annualized total payment volume of $1.7 trillion [5] - The company has a strong brand and benefits from a powerful network effect, allowing it to maintain a successful niche despite intense competition [6] - PayPal's financial health is solid, with $15.8 billion in cash and equivalents against $12.6 billion in debt, and an operating margin of 19.6% in Q1 [7] - The stock is currently trading 77% below its peak from July 2021, offering a forward P/E ratio of 14, which is attractive for investors [8] Group 2: SoFi Technologies - SoFi Technologies is a rapidly growing digital bank, achieving a 20% year-over-year revenue increase and adding 800,000 net new customers in Q1 [10] - The company has 10.9 million customers, indicating significant growth potential through cross-selling, as the average customer uses 1.5 different products [11] - SoFi is now profitable, with diluted EPS of $0.06 in Q1, marking six consecutive quarters of positive GAAP net income, and forecasts EPS of $0.68 by 2026 [12] - The stock has a forward P/E ratio of 49, which may seem high, but the earnings growth trajectory makes it more appealing [14]