The Zacks Analyst Blog Visa, PayPal, American Express, Affirm and Fidelity National Information Services

Core Insights - The article emphasizes the potential of financial technology (fintech) as a transformative investment space, merging finance and technology, with a focus on companies that streamline financial services and enhance efficiency and security [2][3][4]. Fintech Industry Overview - The fintech sector is expected to benefit from increasing transaction volumes due to the widespread adoption of digital means, accelerated by the pandemic [3]. - The performance of fintech companies is inversely related to interest rates, with recent reductions in rates expected to positively impact their growth [5][6]. Recommended Fintech Stocks - Five fintech stocks are recommended for long-term investment: Visa Inc., PayPal Holdings Inc., American Express Co., Affirm Holdings Inc., and Fidelity National Information Services Inc. [4][9]. Visa Inc. - Visa's fiscal first-quarter earnings exceeded estimates by 3.4%, with expected net revenue growth in low double-digits for fiscal 2025 [11]. - The company has invested $3.5 billion in its data platform, preventing$40 billion in fraud attempts annually, and has a return on equity (ROE) of 54.8% [13][14]. PayPal Holdings Inc. - PayPal is experiencing robust growth in total payment volume, with an expected revenue growth rate of 3.8% and earnings growth of 7.5% for the current year [15][18]. - The company has an attractive valuation with a forward P/E of 15.45X, significantly lower than the industry average [17]. American Express Co. - American Express is focusing on growth initiatives that include new product launches and partnerships, with expected revenue and earnings growth rates of 18.7% and 14.8%, respectively [19][21]. - The company targets Millennials and Gen-Z consumers, enhancing its long-term growth prospects [20]. Affirm Holdings Inc. - Affirm's fiscal second-quarter earnings significantly beat estimates, with expected revenue growth of 35.2% and earnings growth of 3.5% for the current year [22][25]. - Key partnerships and expansion into the UK market are expected to drive future growth [24]. Fidelity National Information Services Inc. - Fidelity National is focusing on organic growth in banking solutions and digital transformation, with expected revenue and earnings growth rates of 4.2% and 10.5%, respectively [26][28]. - The company is investing in technology and innovation to expand its market presence [27].