In this article, we will be looking at the 10 best-performing fintech stocks to buy according to analysts.
Fintech, or financial technology, is transforming the way the world handles money. It is making financial services faster, more accessible, affordable, and user-friendly. The fintech sector is experiencing rapid growth driven by several key trends. These trends include the adoption of artificial intelligence (AI) and the rise of e-commerce. These factors are driving growth and supporting the demand for innovative payment solutions, embedded finance, and secure transaction technologies. Embedded finance, which involves integrating financial services into everyday digital experience, is becoming essential for businesses to stay competitive and apart from e-commerce, it is becoming especially important for sectors like healthcare, education, and real estate.
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According to a report by IMARC Group, the global fintech market was valued at $218.8 billion in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 15.82% during 2025-2033 to reach a value of $828.4 billion by the end of the forecast period. In 2024, North America dominated the fintech market, accounting for more than 35.8% of the market share.
From digital payments and fraud prevention to AI-powered insurance and blockchain technology, fintech continues to revolutionize traditional finance. With new and innovative solutions that fintech offers, it is no surprise that fintech is becoming increasingly popular, especially among younger generations who prefer using smartphones or laptops for tasks like making payments, investing, or even seeking financial advice.
Traditional financial institutions are also investing heavily in fintech products to stay relevant. This has made fintech a high-growth industry, which presents a significant opportunity for investors to invest in companies that are leading financial innovation.
With this background in mind, let’s take a look at the 10 best-performing fintech stocks to buy according to analysts.
An individual using a laptop to access the fintech platform to manage their finances.
Methodology
To compile our list of the 10 best-performing fintech stocks to buy according to analysts, we looked for the biggest fintech companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best fintech stocks. Then we looked for the best-performing stocks in the fintech sector and narrowed down our list to stocks that have gained at least 8% year-to-date as of February 26, 2025. Next, we focused on the top fintech stocks that analysts believe have the most potential for growth. Finally, we ranked the 10 best-performing fintech stocks to buy based on their average price target upside potential according to analysts as of February 26, 2025.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Performing Fintech Stocks to Buy According to Analysts
10. Visa Inc. (NYSE:V)
Year-to-Date Performance: 11.52%
Average Price Target Upside Potential According to Analysts: 11.23%
Number of Hedge Fund Holders: 181
Visa Inc. (NYSE:V) is a global digital payments company that ranks among the best-performing fintech stocks to buy according to analysts. The company offers a variety of payment products, including credit cards, debit cards, and payment processing to facilitate digital payments across more than 200 countries and territories. Visa Inc. (NYSE:V) serves consumers, merchants, financial institutions, businesses, strategic partners and government entities. The company’s products and services are available on cards, mobile devices, laptops, tablets, and more.
As the leading global digital payment technology company, Visa Inc. (NYSE:V) is well-positioned to benefit from the rise of fintech. Aoris Investment Management, a specialist international equity manager, noted in its Q4 2024 investor letter that Visa Inc. (NYSE:V) is the largest payment services company in the world. The investment management firm has a positive outlook on the company. The investor letter highlighted that it is impressive how Visa Inc. (NYSE:V) has made consumer payments easier, faster, and safer over time. The company’s innovations, such as enabling payments through smartphones or smartwatches, make everyday transactions like buying coffee or commuting quick and frictionless. Aoris Investment Management expects that Visa Inc. (NYSE:V) will continue to benefit from the growing usage of its payment network for years to come by making consumer and business payments easier, faster, and more secure.
9. Dave Inc. (NASDAQ:DAVE)
Year-to-Date Performance: 19.97%
Average Price Target Upside Potential According to Analysts: 11.54%
Number of Hedge Fund Holders: 27
Dave Inc. (NASDAQ:DAVE) is an American neobank and financial technology company that provides digital banking services. The company offers digital checking and banking accounts, cash advances, and even side hustles. The company offers ExtraCash, a short-term loan for amounts ranging from $25 to $500. Dave Inc. (NASDAQ:DAVE) uses CashAI, its proprietary AI underwriting model that analyzes cash flow instead of credit scores to determine the eligibility of members. The company offers innovative products and aims to make finances easier for its members. DAVE ranks among the best-performing stocks to buy in the fintech industry.
On February 18, Benchmark analysts raised the firm’s price target on Dave Inc. (NASDAQ:DAVE) to $145 from $119 and maintained a ‘Buy’ rating. This decision reflects the company’s significant operational improvements, which have led to a 13-fold increase in its share price since the start of 2024. Despite this growth, Benchmark analysts believe that Dave Inc. (NASDAQ:DAVE) still trades at a considerable discount compared to industry peers. The firm is optimistic about DAVE’s ability to maintain strong revenue and earnings growth. This is further supported by the fact that Dave Inc. (NASDAQ:DAVE) plans to expand and diversify its product offerings, with a focus on new credit-oriented services. The company’s forward-looking strategies are expected to support sustained growth.
8. MercadoLibre, Inc. (NASDAQ:MELI)
Year-to-Date Performance: 24.51%
Average Price Target Upside Potential According to Analysts: 13.76%
Number of Hedge Fund Holders: 96
MercadoLibre, Inc. (NASDAQ:MELI) is Latin America’s leading e-commerce and financial technology company. The company has operations in 18 countries and offers a range of services including an online marketplace, financial services, logistics services, advertising solutions, and merchant acquiring. The company offers its fintech solutions through its Mercado Pago business. MercadoLibre, Inc. (NASDAQ:MELI) ranks among the best-performing stocks in the fintech sector.
The company is focused on a long-term growth strategy and continues to invest in its business. With a clear strategy to build a business with much greater scale, MercadoLibre, Inc. (NASDAQ:MELI) is looking to benefit from the growth of e-commerce and digitalization of cash in Latin America. On February 23, 2025, Morgan Stanley analyst Andrew Ruben increased the firm’s price target on MercadoLibre, Inc. (NASDAQ:MELI) to $2,650 from $2,400 and reiterated an ‘Overweight’ rating. This decision came after reviewing the company’s annual 10-K filing for 2024. Morgan Stanley’s review of the filing highlighted the company’s strategic focus on investing in AI, talent, and fintech. The firm raised its forecast for MercadoLibre, Inc.’s (NASDAQ:MELI) fiscal year 2025 EBIT by 9% and identified MELI as a top pick due to its strong growth momentum.
7. Fiserv, Inc. (NYSE:FI)
Year-to-Date Performance: 11.52%
Average Price Target Upside Potential According to Analysts: 14.49%
Number of Hedge Fund Holders: 80
Fiserv, Inc. (NYSE:FI) is an American multinational company that provides payments and financial technology products and services. The company offers a range of solutions for banking, global commerce, merchant acquiring and processing, billing and payments, and point-of-sale. It serves customers in retail and the financial industry, ranging from small businesses to large financial institutions. Fiserv, Inc. (NYSE:FI) ranks among the best-performing fintech stocks to buy.
In October 2024, the company announced that it is further investing in Clover to launch all-in-one solutions for restaurants, retailers, and service businesses. Clover is Fiserv, Inc.’s (NYSE:FI) cloud-based point-of-sale and business management platform. The new solutions combine flexible hardware with software to address the unique needs of individual businesses, providing restaurants, retailers, and service-based businesses with industry-specific solutions to save time, make money, and grow. The new solutions include new hardware, integrated capabilities such as employee management and customer loyalty programs, and flexible financial solutions like cash advances and instant transfers.
On February 5, 2025, TD Cowen analysts raised their price target on Fiserv, Inc. (NYSE:FI) from $235 to $277 and maintained a ‘Buy’ rating. This adjustment follows the company’s strong performance in its Merchant segment, which is driven by the success of its Clover product line. TD Cowen highlighted Fiserv, Inc.’s (NYSE:FI) potential for growth in the 2025 fiscal year as the company is expected to benefit from new products and partnerships. The analysts praised Fiserv, Inc.’s (NYSE:FI) financial profile, which includes a mid-teens or higher growth in earnings per share (EPS). TD Cowen pointed out that the company’s consistent performance could support further expansion in the market, especially as it continues to develop and scale its offerings.
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.
5. Clearwater Analytics Holdings, Inc. (NYSE:CWAN)
Year-to-Date Performance: 11.47%
Average Price Target Upside Potential According to Analysts: 18.69%
Number of Hedge Fund Holders: 48
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is a financial technology and software company that provides investment accounting software for reporting and reconciliation services for institutional investors. The company offers a range of services including investment portfolio planning, performance reporting, data aggregation, reconciliation, accounting, compliance, risk, and order management. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is one of the best-performing stocks to buy according to analysts.
On January 13, 2025, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) announced that it has entered into an agreement to acquire Enfusion for a purchase price of $1.5 billion. Enfusion is a leading provider of software-as-a-service (SaaS) solutions for the investment management and hedge fund industry and this merger will expand the company’s investment management platform with front-to-back capabilities. This strategic move accelerates Clearwater Analytics Holdings, Inc.’s (NYSE:CWAN) goal of building the first cloud-native front-to-back platform for the investment management industry. Additionally, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) continues to invest in research and development, particularly in Generative AI, to stay ahead of the market and deliver innovative solutions to its clients.
4. Nu Holdings Ltd. (NYSE:NU)
Year-to-Date Performance: 8.00%
Average Price Target Upside Potential According to Analysts: 28.48%
Number of Hedge Fund Holders: 79
Nu Holdings Ltd. (NYSE:NU) is a Brazilian fintech and digital banking company. Through its digital financial services platform, the company serves more than 110 million customers in Brazil, Mexico, and Colombia. The company has a fully digital model and it offers innovative financial products and services by leveraging data and proprietary technology. Nu Holdings Ltd. (NYSE:NU) ranks among the best-performing stocks in the fintech sector.
Baron Funds, an investment management company, has a positive outlook on Nu Holdings Ltd. (NYSE:NU). In its “Baron FinTech Fund” Q4 2024 investor letter, the investment management firm expressed confidence in Nu Holdings Ltd.’s (NYSE:NU) growth prospects and noted that the company is addressing key issues faced by banking customers in Latin America, including high fees, poor customer service, and limited access to financial products. Baron Funds believes that Nu Holdings Ltd.’s (NYSE:NU) superior offerings will lead to continued gains in market share.
The company continues to expand its product portfolio and attract new customers in the markets where it operates. In January 2025, Nu Holdings Ltd. (NYSE:NU) announced that it reached 10 million customers in Mexico. The company’s digital model combined with innovative offerings has helped it double its customer base in the country over the past year.
3. PagSeguro Digital Ltd. (NYSE:PAGS)
Year-to-Date Performance: 23.56%
Average Price Target Upside Potential According to Analysts: 37.42%
Number of Hedge Fund Holders: 36
PagSeguro Digital Ltd. (NYSE:PAGS) is a financial services and digital payments company that is primarily focused on serving consumers, individual entrepreneurs, micro-merchants, small companies, and medium-sized companies in Brazil. The company offers digital payment services and solutions for e-commerce, virtual stores, and physical stores. Additionally, the company offers digital banking services. PagSeguro Digital Ltd. (NYSE:PAGS) is one of the biggest fintech companies in Latin America. PAGS ranks among the best-performing fintech stocks to invest in.
The company is actively expanding its customer base and expanding into new profitable areas. In Q4 2024, PagSeguro Digital Ltd. (NYSE:PAGS) reported an increase in total payment volume (TPV) driven by an increase in all segments. The micro, small, and medium businesses (MSMB) sector was up 21.1% year-over-year. The large retail merchants and e-commerce (LMEC) segment also saw a 45.3% increase. The TPV per merchant rose to BRL 22.9 thousand, an increase of 32.5% compared to Q4 2023. For the full year 2024, PagSeguro Digital Ltd. (NYSE:PAGS) reported that its payment TPV reached a record BRL 518 billion, up 32% year-over-year. The company ended 2024 with 33.2 million clients after successfully adding 2.1 million over the past year. This performance was driven by strong growth in the company’s banking business, thanks to a robust banking platform.
2. StoneCo Ltd. (NASDAQ:STNE)
Year-to-Date Performance: 17.04%
Average Price Target Upside Potential According to Analysts: 49.32%
Number of Hedge Fund Holders: 24
StoneCo Ltd. (NASDAQ:STNE) is a financial technology company that provides a range of products and services that help merchants and integrated partners to conduct electronic commerce in Brazil. The company offers a range of fintech and software solutions, including advanced point-of-sale (POS) systems, mobile payment applications, online payment gateways, and a variety of merchant services designed to streamline payment processing across in-store, online, and mobile channels. StoneCo Ltd. (NASDAQ:STNE) ranks among the best-performing stocks in the fintech sector.
The company is strategically focused on serving micro, small, and medium-sized businesses (MSMBs). By providing digital financial services to these businesses, StoneCo Ltd. (NASDAQ:STNE) is fueling Brazil’s transition to a cashless economy. In the third quarter of 2024, the company reported a 20% year-over-year increase in MSMB total payment volume, which reached BRL 114 billion. The company served 4 million active MSMB clients in the quarter, up 21% year-over-year. StoneCo Ltd. (NASDAQ:STNE) also reported a record take rate for MSMBs of 2.58%. The company is successfully enhancing its profitability while also gaining market share in the MSMB market.
1. Robinhood Markets, Inc. (NASDAQ:HOOD)
Year-to-Date Performance: 23.86%
Average Price Target Upside Potential According to Analysts: 51.48%
Number of Hedge Fund Holders: 79
Robinhood Markets, Inc. (NASDAQ:HOOD) is an American financial services and technology company. Through its platform, the company allows users to invest in stocks, options, futures, and cryptocurrencies. The company introduced commission-free stock trading with a focus on making investing accessible to all users, particularly younger generations. Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the best-performing stocks in the fintech sector.
On February 13, 2025, Needham analysts raised the price target for Robinhood Markets, Inc. (NASDAQ:HOOD) to $70 from $52 and maintained a ‘Buy’ rating on the stock. This revision follows the company’s impressive Q4 2024 performance. Robinhood Markets, Inc. (NASDAQ:HOOD) achieved an adjusted EBITDA margin of 60% in Q4 2024, driven by growth across all transaction segments and effective expense management. Needham expects crypto trading volume to rise significantly in the second half of 2025. This positive outlook is partly based on Robinhood Markets, Inc.’s (NASDAQ:HOOD) recent acquisition of Bitstamp, which is anticipated to boost the company’s crypto trading volumes by about 40%. The analyst from Needham noted the company’s strong outlook and strategic moves and indicated confidence in Robinhood Markets, Inc.’s (NASDAQ:HOOD) ability to continue its growth trajectory.
Overall, HOOD ranks first among the 10 best-performing fintech stocks to buy according to analysts. While we acknowledge the potential of fintech companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HOOD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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