In this article, we will take a look at the 5 best fintech stocks to buy at a discount. To see more such companies, go directly to 13 Best Fintech Stocks to Buy at a Discount.
5. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 74
The Goldman Sachs Group, Inc. (NYSE:GS)’ PE ratio stands at about 10 as of April 12. The Goldman Sachs Group, Inc. (NYSE:GS)’s dividend yield is over 3%. GS is down 5.4% year to date through April 12. In February, The Goldman Sachs Group, Inc. (NYSE:GS)’s board approved a new share repurchase program of up to $30 billion.
As of the end of the fourth quarter of 2022, 74 hedge funds tracked by Insider Monkey had stakes in The Goldman Sachs Group, Inc. (NYSE:GS). The biggest stakeholder of The Goldman Sachs Group, Inc. (NYSE:GS) was Boykin Curry’s Eagle Capital Management which owns a $1.1 billion stake in the company.
Manole Capital Management made the following comment about The Goldman Sachs Group, Inc. (NYSE:GS) in its Q3 2022 investor letter:
“Back in 2019, The Goldman Sachs Group, Inc. (NYSE:GS) made a splash in the card industry by working with Apple and MasterCard on a credit card. The actual card is fairly sleek (as you can see below), as customers names are etched into an Apple titanium card. The no-fee card generated a lot of hype, as many early users were quick to post their latest card on various social media sites.
The initial goal of Marcus (back in 2016) was to leverage Goldman’s wonderful name brand and build a full-service digital bank. This card was a large piece of GS’s ambitions to grow its retail banking franchise called Marcus. After 5 years, Marcus now has 14 million customers and $16 billion in loan balances. Surprisingly, Marcus now represents nearly 20% of the firm’s total revenue.
We thought it would be interesting to look how the Apple Card is doing in terms of loans and exposures. With over $100 billion in assets, this has been a successful source of cheap deposits for GS. Despite having an institutional / “white shoe” brand in the investment banking and trading world, GS’s Apple Card has been a disappointment.” (Click here to read the full text)
4. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 81
Over the past six months Citigroup Inc. (NYSE:C) shares are down about 6%. Citigroup Inc. (NYSE:C) ’s PE ratio stands at 6.64 as of April 12. In January Citigroup Inc. (NYSE:C) posted fourth-quarter results. Revenue in the quarter totaled $18 billion, beating estimates of $17.97 billion.
A total of 81 hedge funds tracked by Insider Monkey reported owning stakes in Citigroup Inc. (NYSE:C) as of the end of the fourth quarter of 2022. The biggest stakeholder of Citigroup Inc. (NYSE:C) was Warren Buffett’s Berkshire Hathaway (NYSE:BRK) which owns a $2.5 billion stake in the company.
3. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 100
Year to date JPMorgan Chase & Co. (NYSE:JPM) shares are down about 4.8%. JPMorgan Chase & Co. (NYSE:JPM) has an attractive PE ratio and dividend yield. Amid the SVB collapse, consumers started to exit smaller banks and deposit their money with major banks like JPMorgan Chase & Co. (NYSE:JPM). This would bode well for the bank and its stock performance in the coming weeks.
As of the end of the fourth quarter of 2022, 100 hedge funds tracked by Insider Monkey were bullish on JPMorgan Chase & Co. (NYSE:JPM). The biggest hedge fund stakeholder of JPMorgan Chase & Co. (NYSE:JPM) is Edgar Wachenheim’s Greenhaven Associates which owns a $643 million stake in the company.
2. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 100
Bank of America Corporation (NYSE:BAC) shares have lost about 14% in value in 2023 through April 12. Bank of America Corporation (NYSE:BAC)’s PE ratio stands at 9. It is one of the most popular stocks among the elite hedge funds tracked by Insider Monkey. As of the end of the fourth quarter of 2022, 100 hedge funds in Insider Monkey’s database had stakes in Bank of America Corporation (NYSE:BAC). The biggest hedge fund stakeholder of Bank of America Corporation (NYSE:BAC) was Warren Buffett’s Berkshire Hathaway which owns a $33.4 billion stake in the bank.
Recently, BMO Capital Markets Chief Investment Strategist Brian Belski gave favorable comments for Bank of America Corporation (NYSE:BAC), along with several other financial stocks, as the analyst believes the selloff in the sector after the SVB collapse is overdone and presents attractive buying opportunities.
Oakmark Equity and Income Fund made the following comment about Bank of America Corporation (NYSE:BAC) in its Q1 2023 investor letter:
“The Oakmark Equity and Income Fund has 29% of its equity portfolio in financials. This made the March sell-off painful, but we do not believe that this has meaningfully changed the value of most of our financial equity holdings. In fact, we were adding to financial positions throughout March. We believe that one way to analyze our financial holdings is to look at them in different buckets given their various business models and risk profiles. Almost 30% of our financial exposure is in insurance companies and insurance brokers. Insurance companies have very stable liability profiles, so the main risk is a change in asset values. We are comfortable with their investment portfolios and think these stocks are quite attractive. Around 5% of our financials are asset managers. This leaves a little over 40% of the financials exposure in a varied group of banks and lenders. About 5% of that portfolio is in Bank of America Corporation (NYSE:BAC) and State Street. These two banks are designated as Systematically Important Financial Institutions and are held to higher regulatory standards. Our largest single financials holding is Bank of America, which has grown deposits during March, and we believe it is one of the best managed companies in the sector.”
1. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 115
PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the most prominent fintech stocks currently trading at a discount. PayPal Holdings, Inc. (NASDAQ:PYPL) has lost about 32% over the past 12 months. In February PayPal Holdings, Inc. (NASDAQ:PYPL) posted strong Q4 results. Adjusted EPS in the period came in at $1.24, beating estimates by $0.04. Revenue in the period increased by about 6.9% year over year to reach $7.4 billion, beating estimates by $10 million. PayPal Holdings, Inc. (NASDAQ:PYPL) also increased its 2023 guidance.
As of the end of the last quarter of 2022, 115 hedge funds tracked by Insider Monkey had stakes in PayPal Holdings, Inc. (NASDAQ:PYPL). The total worth of these stakes was $5.1 billon. The biggest hedge fund stakeholder of PayPal Holdings, Inc. (NASDAQ:PYPL) was Ken Griffin’s Citadel Investment Group which has a $481 million stake in PYPL.
Renaissance Large Cap Growth Strategy made the following comment about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q4 2022 investor letter:
“Another underperformer in the quarter was PayPal Holdings, Inc. (NASDAQ:PYPL). Despite reporting solid third quarter operating results and announcing new payment agreements with both Apple and Amazon.com, the company guided for a slowdown in e-commerce activity, partly reflecting weakened consumers who are dealing with heightened inflation. However, we still expect growth in PayPal’s core payments platforms to improve in upcoming quarters, driven by easier year-over-year comparisons.”
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