Fintech has brought revolutionary change to the way the financial industry operates. Since the onset of the COVID-19 pandemic, the fintech industry has played an instrumental role in enabling the world to adapt to rapid ongoing digitization. The innovations delivered by…
fintech companies have helped lower the cost of financial services, allowing consumers to conduct financial transactions remotely. According to a Kenneth Research report, the global fintech market is expected to reach $305.70 billion by 2023, growing at a 22.2% CAGR.
Given this backdrop, we think it could be wise to scoop up quality fintech stocks Intuit Inc. (INTU – Get Rating), FactSet Research Systems Inc. (FDS – Get Rating), and OneMain Holdings, Inc. (OMF – Get Rating). They are currently trading much below their 52-week highs but have significant growth potential.
Intuit Inc. (INTU – Get Rating)
INTU provides financial management and compliance products and services. The Mountain View, Calif.-based company operates through three segments: small business & self-employed; consumer; and strategic partner. In addition, it provides TurboTax, QuickBooks, Mint, Credit Karma, and Mailchimp.
On Nov. 1, 2021, INTU announced the acquisition of Mailchimp, which provides a customer engagement and marketing platform for growing small- and mid-market businesses. INTU and Mailchimp are expected to work together to help tackle the challenges faced by small- and mid-market companies.
INTU’s non-GAAP revenue for its fiscal first quarter, ended Oct. 31, 2021, increased 51.7% year-over-year to $2 billion. The company’s non-GAAP operating income increased 66% year-over-year to $555 million, while its non-GAAP EPS came in at $1.53, up 63% year-over-year. Its revenue and EPS have increased at CAGRs of 18.9% and 13.5%, respectively, over the past three years.
Analysts expect INTU’s EPS for the quarter ending Jan. 31, 2022, to increase 177.9% year-over-year to $1.89. Its revenue for its fiscal 2022 is expected to increase 27.4% year-over-year to $12.27 billion. Over the past year, the stock has gained 55.4% in price to close yesterday’s trading session at $578.72. It is currently trading 19.2% below its 52-week high of $716.86, which it hit on Nov. 19, 2021.
INTU’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, which equates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
It has an A grade for Sentiment and Quality and a B grade for Growth. It is ranked #20 of167 stocks in the Software – Application industry. Click here to see the other ratings of INTU for Value, Momentum, and Stability.
FactSet Research Systems Inc. (FDS – Get Rating)
FDS in Norwalk, Conn., provides integrated financial information, analytical applications, and services to the investment and corporate communities. The company delivers information through its four workflow solutions: Research, Analytics and Trading; Content and Technology Solutions; and Wealth. It provides insights into global market trends and intelligence on companies and industries.
On Dec. 27, 2021, FDS announced that it had agreed to acquire CUSIP Global Services (CGS) from S&P Global. The acquisition should enable FDS to…
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