We recently compiled a list of the 10 Worst Performing Fintech Stocks to Buy According to Analysts. In this article, we are going to take a look at where BILL Holdings, Inc. (NYSE:BILL) stands against the other fintech stocks.
Mark Palmer, Managing Director at Benchmark, joined Yahoo Finance Live on February 15, 2025, to discuss the fintech sector. He emphasized that it is currently a “stock picker’s sector.” Palmer noted that valuations in the fintech space are not connected with the growth potential of many companies.
However, he noted that not all of the fintech companies are equally positioned for success. He believes that companies heavily tied to credit, such as neobanks and online lenders, continue to be vulnerable because of growing concerns about consumer credit tightening.
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Palmer noted that some fintech companies are well-positioned to help consumers during a difficult time. For instance, companies that serve as a substitute for traditional banking, particularly for lower-income individuals who face barriers at traditional banks. He believes this type of value-added service is sustainable and companies that offer such services could experience stock boosts.
In the fintech sector, careful stock selection could be crucial. Analysts and experts see opportunities for growth in companies that offer meaningful consumer solutions.
Methodology
To compile our list of the 10 worst-performing fintech stocks to buy according to analysts, we looked for fintech companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of fintech stocks. Then we looked for the worst-performing stocks in the fintech sector and narrowed down our list to stocks that have fallen by at least 12% year-to-date as of February 28, 2025. Next, we focused on the top fintech stocks that analysts believe have the most potential for growth. Finally, we ranked the 10 worst-performing fintech stocks to buy based on their average price target upside potential according to analysts, as of February 28, 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).
A group of finance professionals hard at work in an office, signifying accounts payable and accounts receivable.
BILL Holdings, Inc. (NYSE:BILL)
Year-to-Date Performance: -34.32%
Average Price Target Upside Potential According to Analysts: 57.61%
Number of Hedge Fund Holders: 64
BILL Holdings, Inc. (NYSE:BILL) is an American financial technology company that provides automated, cloud-based software for financial operations. The company focused on small and mid-sized businesses in a range of industries. BILL Holdings, Inc. (NYSE:BILL) helps businesses streamline their financial workflow, generate and process invoices, streamline approvals, send and receive payments, sync with their accounting system, and manage their cash. As a result, the company plays a key role in the accounts payable and accounts receivable operations for businesses. BILL ranks among the worst-performing stocks to buy in the fintech sector.
The company is continuously innovating to meet the expanding and changing financial operations needs of small and mid-sized businesses (SMBs). Some recent examples by BILL Holdings, Inc. (NYSE:BILL) include procure-to-pay experience and powerful multi-entity tools that allow larger businesses to drive more automation and improve efficiency. Additionally, BILL Holdings, Inc. (NYSE:BILL) has significantly enhanced its payment offerings, particularly card services. This strategy has led to card adoption more than tripling over the past 2 years among the accounts payable and accounts receivable customers.
The company is focused on transforming financial operations for millions of SMBs by leveraging its AI-enabled platform and efficient go-to-market strategies to drive growth and leadership in the market. In the second fiscal quarter of 2025, which ended December 31, 2024, BILL Holdings, Inc. (NYSE:BILL) processed $84 billion in total payment volume, up 13% compared to the same quarter in the previous year. BILL Holdings, Inc. (NYSE:BILL) processed 30 million transactions during the quarter, an increase of 17% year-over-year.
Overall, BILL ranks 1st on our list of the worst-performing fintech stocks to buy according to analysts. While we acknowledge the potential of BILL as an investment, 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 BILL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.