13 Most Promising Fintech Stocks to Buy

2. Block, Inc. (NYSE:SQ)

Average Upside Potential: 34.39%

Number of Hedge Funds: 59

Block, Inc. (NYSE:SQ) helps expand access to the economy through Square, Cash App, Spiral, TIDAL, and TBD. Square offers an integrated ecosystem of commerce solutions, business software, and banking services for sellers to grow their business while Cash App allows sending, spending, or investing money in stocks or crypto. Spiral advances the use of Bitcoin by building and funding free, open-source projects whereas TIDAL is a platform for musicians and their fans. TBD eases access to Bitcoin and other blockchain technologies.

The key businesses of Block, Inc. (NYSE:SQ) have proven to be robust. In the overall Square gross profit, the gross profit from international markets continues to grow which shows an expanding business. The CashApp ecosystem has successfully driven growth across diverse services and revenue streams while total inflows have increased 22% year-over-year. Additionally, the market opportunity for the firm remains vast. While Square represents a nearly $130 billion gross profit opportunity, Cash App represents a nearly $75 billion gross profit opportunity in the US.

The firm recorded a strong second quarter with its gross profit increasing 20% since the prior-year period. Square gross profit increased 15% year-over-year while Cash App’s gross profit climbed 23% year-over-year. Adjusted operating income was up 16 folds year-over-year. For the 12 months ending in June 2024, Block had $1.43 billion in adjusted free cash flow, almost doubling from the preceding year.

With growth at scale and successful key businesses alongside strong financial results, Block, Inc. (NYSE:SQ) has a lot of future potential. As of Q2, the stock is held by 59 hedge funds. The average upside potential for the stock stands at 34.39%.