2 Lesser-Known Fintech Stocks to Own in 2021

When it comes to the fintech space, most people are focused on Square (SQ), PayPal (PYPL), and the other top players in the sector.

However, there are some lesser-known fintech stocks worthy of investor consideration. The bottom line is this is a highly competitive space with more than enough room for several players…

Below, we provide a look at two intriguing fintech stocks that don’t receive nearly enough attention: PagSeguro Digital (PAGS – Get Rating) and Zuora (ZUO – Get Rating).

PAGS by the Numbers

PAGS started 2020 in the mid-$30s, dropped below $15 during the start of the pandemic, and has been gradually moving higher ever since. In fact, PAGS has moved beyond its pre-COVID trading price in recent months, soaring all the way to $50.

This Brazil-based fintech company is beloved by analysts, who have established an average price target of $65 for the stock, indicating a potential upside of 32%. Though PAGS has a fairly high forward P/E ratio of 48.44, it is trading within $10 of its 52-week high of $59.38. 

PAGS is Poised to Pop

Though PAGS suffered a setback as a result of the pandemic, the economic recovery on the horizon will likely buoy the stock. There is a good chance Brazil and other countries within Latin America will experience an economic rebound in the months ahead, setting the stage for this fintech company to pass through the current headwinds and emerge at some point in better shape.

Enthusiasm for PAGS is growing following its partnership with the insanely popular TikTok social media platform. The partnership sets the stage for TikTok users to check their PAGS PagBank balance through the platform. Furthermore, PAGS bought a Brazilian payment processing business known as Wirecard, a move that will facilitate economic transactions all the more. Though PAGS is not the sole player in the Latin American payment processing space, the market should continue to grow.

ZUO by the Numbers

Check out ZUO’s chart, and you will find the stock was chugging along quite nicely until the start of the pandemic. ZUO dipped from $16 down to $7 in mid-March. However, ZUO rallied in the months that followed, steadily increasing. ZUO bounced all the way up to $16 in early September. The stock subsequently dipped back down to $9, moved sideways, and has been on the rise since November.

Analysts are bullish on ZUO, setting an average price target of

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