10 Best Performing Fintech Stocks to Buy According to Analysts

6. Upstart Holdings, Inc. (NASDAQ:UPST)

Year-to-Date Performance: 13.13%

Average Price Target Upside Potential According to Analysts: 16.31%

Number of Hedge Fund Holders: 39

Upstart Holdings, Inc. (NASDAQ:UPST) is an American fintech company that operates a cloud-based artificial intelligence (AI) lending marketplace. The company partners with banks and credit unions and offers personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar “relief” loans through its platform. Upstart AI allows lenders to approve more borrowers at lower rates while delivering an impressive digital-first experience that is customer-friendly. Upstart Holdings, Inc. (NASDAQ:UPST) ranks among the best-performing stocks in the fintech sector.

The company is focused on achieving significant growth through innovative models and product developments. In Q4 2024, Upstart Holdings, Inc. (NASDAQ:UPST) launched Model 19, which introduced the Payment Transition Model (PTM). This new capability allows the underwriting model to consider intermediate delinquency states, making it more accurate than previous models. Additionally, in Q4 2024, Upstart Holdings, Inc. (NASDAQ:UPST) released new underwriting models for both its auto refinance and auto retail products, which led to increased conversion rates. The company also automated the counter-offer process, an important conversion booster. In December 2024, Upstart Holdings, Inc. (NASDAQ:UPST) introduced a machine learning-powered feature that increased instant income verification rates by 34%. The company is also working to accelerate its ability to cross-sell HELOCs to prior borrowers and finished 2024 with HELOCs being offered in 36 states, representing 60% of the US population.

These strategic moves helped Upstart Holdings, Inc. (NASDAQ:UPST) deliver exceptional results for the quarter. In Q4 2024, total revenue was $219 million, representing a 56% year-over-year increase. Transaction volume was up 68% year-over-year while the conversion rate was 19.3%, up from 11.6% in Q4 2023.