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 Lightspeed Commerce Inc. (NYSE:LSPD) 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 customer using a mobile device to purchase goods through an omni-channel experience.
Lightspeed Commerce Inc. (NYSE:LSPD)
Year-to-Date Performance: -19.76%
Average Price Target Upside Potential According to Analysts: 25.72%
Number of Hedge Fund Holders: 18
Lightspeed Commerce Inc. (NYSE:LSPD) is a Canadian financial technology company that provides point-of-sale and e-commerce software. The company operates a comprehensive platform and offers cloud commerce solutions that help businesses manage their online and physical sales operations, including inventory, payments, customer engagement, and reporting. It allows businesses to simplify, scale, and enhance customer experiences across various channels. The company serves retail, hospitality and golf businesses in more than 100 countries. Lightspeed Commerce Inc. (NYSE:LSPD) ranks among the worst-performing stocks to buy in the fintech sector.
In February 2025, the company announced the results of its strategic review on transforming the business to maximize value and profitability. Lightspeed Commerce Inc. (NYSE:LSPD) plans to grow its retail operations in North America and hospitality services in Europe. The company will strategically focus on expanding locations, increasing revenue per user through software and payment solutions, and optimizing other business areas for improved efficiency and profitability. With this new strategy, Lightspeed Commerce Inc. (NYSE:LSPD) will focus on improving sales with AI-driven tools, enhancing inventory and supplier management for retail, and optimizing guest experiences and analytics for hospitality.
The company has already released several new products in the quarter ending December 31, 2024, to enhance its retail and hospitality offerings. For retail, Lightspeed Commerce Inc. (NYSE:LSPD) expanded the Lightspeed Scanner on the Lightspeed iOS app, enabling mobile payments directly from the retail floor. The company also expanded Lightspeed Payments to support suppliers in Australia, the UK, the Netherlands, and Belgium. For hospitality in Europe, Lightspeed Commerce Inc. (NYSE:LSPD) introduced a Kitchen Display System to streamline order flow between front- and back-of-house operations and introduced Lightspeed Pulse, which provides restaurateurs mobile access to actionable insights and key metrics like sales and live orders.
Overall, LSPD ranks 9th on our list of the worst-performing fintech stocks to buy according to analysts. While we acknowledge the potential of LSPD 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 LSPD 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.