Source: Wright Studio / Shutterstock.com
Source: Wright Studio / Shutterstock.com
With the arrival of the new year, now is a great time to start looking ahead and considering potential market opportunities in 2023. Fintech was a major casualty during this downturn, but some of these companies are well-positioned for growth in the years to come. Therefore, the current downturn is an ideal time to invest in the best fintech stocks to buy.
Despite being overvalued in some cases last year, plenty of businesses still have excellent products and services that can effectively withstand the economic distress at this time. We may be holding our breath and anticipating what 2023 has in store, but now is the time to assess these potential opportunities with fresh eyes and an open mind. That said, here are three of the best fintech stocks to buy at this time.
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Block (NYSE:SQ) is one of the leading fintech businesses with a tremendous record of growing its top-line results. Its sales have grown by over 60% over the past five years on average and have proven remarkably resilient.
Moreover, it still boasts an amazing long-term growth runway with $200 billion in annualized payment volume and over $45 trillion in global cashless payment volume, reflecting how much further the business can expand. Cash App has tapped into this potential and is continuously expanding its capabilities to create opportunities for cross-selling amongst its huge 50 million user base.
Jack Dorsey’s vision of creating an “ecosystem of ecosystems” within Block has been a journey that began way back in 2009 with the humble Square credit card reader, which provided a revolutionary payments platform for small businesses. Fast forward to 2013, the ground-breaking Cash App, a peer-to-peer payment service, was added to the mix. However, it wasn’t until 2019 that Block started exploring ways to connect these two powerful payment systems – leading us to where we are today. It’s incredibly exciting to see what further developments Block will have in store in the near future.
nCino (NASDAQ:NCNO) offers cloud-based solutions for financial institutions that make operations run more smoothly. Their suite of products includes loan origination systems that eliminate tedious paperwork, improve accuracy, and provide greater bank workflow transparency. Among the features are automated spreading functions that efficiently organize borrower data by pulling key financial information from their financial statements into loan applications. By using nCino’s platforms and solutions, banks can effectively streamline loan processing and boost efficiency while delivering improved customer experiences.
nCino is rapidly becoming a major player in banking solutions as some of the largest banks, such as Wells Fargo and Santander, have integrated their services into their infrastructures. This impressive growth has been underscored by recent announcements such as its multiyear contract with the Bank of New Zealand. As existing clients are using more products and services from nCino, their contracts have the potential to grow in value, further bolstering nCino’s position within financial markets. Despite potential headwinds from an impending recession and greater scrutiny of bankers’ expenses, nCino’s subscription revenue has steadily continued to increase each quarter.
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Toast (NYSE:TOST) is leading the digital transformation in the restaurant sphere in both the U.S. and Ireland. Its robust cloud platform offers multiple solutions for restaurateurs adding multiple new locations each quarter. During its third quarter, its location growth was incredibly encouraging, with 5,500 locations added to take its total number of locations up to 74,000. Sustainable growth through location increases is a surefire way to bring in more customers and further revenue opportunities.
Toast had a very impressive third quarter, resulting in an increase in its guidance for the entire year. Their estimated revenue has now surpassed $2.69 billion, outpacing the expectations of analysts and impressing onlookers. This strong sales execution is particularly remarkable, considering that it’s been achieved in a tumultuous macro environment. With Toast chipping away at the massive market opportunity, most analysts are optimistic about its potential future success.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.