3 Foreign Fintech Stocks Wall Street Loves for 2022

3 Foreign Fintech Stocks Wall Street Loves for 2022

Posted On December 29, 2021 2:15 pm

Fintech has ushered in significant changes in the way the financial industry functions. It has allowed governments to introduce essential financial services to unbanked and underbanked communities. In addition, the industry has helped improve payments processing, insurance, and lending.

The fintech industry has played a significant role, helping the world adapt to the rapid ongoing digitalization. Fintech innovations have brought down the transaction costs of financial services. Due to its easy accessibility and application and integrated technological advancements, fintech companies are also helping to create a more financially inclusive world. 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.

So, we think foreign fintech stocks such as MercadoLibre, Inc. (MELI – Get Rating), PagSeguro Digital Ltd. (PAGS – Get Rating), and StoneCo Ltd. (STNE – Get Rating) could be great additions to one’s watchlist. Wall Street analysts expect them to gain more than 60% in price in the near term.

MercadoLibre, Inc. (MELI – Get Rating)

MELI is an e-commerce company based in Buenos Aires, Argentina. The company enables commerce through its marketplace platform, which is designed to provide users with a portfolio of services to facilitate commercial transactions. It offers e-commerce services such as MercadoLibre Marketplace, MercadoPago payments solution, and MercadoLibre advertising program.

On December 13, 2021, MELI announced the acquisition of Redelcom, which operates as a payment services provider and provides point-of-sale terminals in Chile. The acquisition will likely strengthen its payments operation in Chile and the business position of its MercadoPago unit.

MELI’s revenue for the fiscal third quarter, ended September 30, 2021, increased 66.5% year-over-year to $1.85 billion. The company’s net income increased 533.3% year-over-year to $95.22 million. Also, its EPS came in at $1.92, up 585.7% year-over-year.

Analysts expect MELI’s EPS and revenue for its fiscal 2021 to increase 3,887.5% and 75.4% year-over-year to $3.03 and $6.97 billion, respectively. Over the past three months, the stock has declined 21.7% in price to close yesterday’s trading session at $1,316.28. However, Wall Street analysts expect the stock to hit $2,142.86 in the near term, indicating a potential 62.8% upside.

PagSeguro Digital Ltd. (PAGS – Get Rating)

Headquartered in Sao Paulo, Brazil, PAGS is a fintech company that offers multiple digital payment solutions to micro-merchants, and to small- and medium-sized companies. Its end-to-end digital ecosystem helps its customers to accept payments and manage their businesses.

During Black Friday on November 26, 2021, PAGS marked another all-time daily high, with its TPV reaching more than R$1.10 billion ($0.19 billion). From November 1 till November 29, its TPV grew more than 45% year-over-year, according to the Brazilian Cards Association data. This reinforces its commitment to…


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