3 Fintech Stocks Wall Street Predicts Will Surge by More Than 60%

Even though data security breaches and increasing cyberattacks remain a concern for the fintech industry, the surge in digital financial transactions makes its prospects bright. Investors’ optimism about fintech stocks is evidenced by…

the Global X FinTech ETF’s (FINX) 8.4% gains over the past month, versus the SPDR S&P 500 Trust ETF’s (SPY) 3.6% returns.

Furthermore, the Federal Reserve could raise interest rates as early as 2023, and recently indicated its willingness to reduce asset purchases before the end of the year, which should help Fintech companies expand their profit margins. In addition, the Fintech industry holds immense growth potential over the long run due to the increasing adoption of advanced technologies and innovative solutions. According to an The ExpressWire report, the fintech market is expected to grow at an 8.6% CAGR between 2021 – 2024.

Therefore, we think it could be wise to add fintech stocks SelectQuote, Inc. (SLQT – Get Rating), GoHealth, Inc. (GOCO – Get Rating), and Mogo Inc. (MOGO – Get Rating) to one’s r watchlist. Wall Street analysts expect them to rally significantly in price in the near term.

SelectQuote, Inc. (SLQT – Get Rating)

SLQT is a technology-enabled, direct-to-consumer distribution platform that sells a range of insurance policies to various insurance carriers. The Overland Park, Kans.-based company operates through three segments: Senior; Life; and Auto & Home. It distributes senior health policies, such as Medicare Advantage, Medicare Supplement, Medicare part D, and other ancillary senior health insurance-related policies.

On August 3, 2021, SLQT announced a new partnership with Zing Health for Medicare customers in Indiana, Illinois, and Michigan to promote community health in the greater Chicago, Detroit, and Indianapolis markets. Tim Danker, SLQT’s CEO, said, “Zing Health is a great addition to the SelectQuote Senior business as they seek to drastically improve health outcomes in diverse populations that are underserved.”

SLQT’s revenue surged 33% year-over-year to $188.40 million in its  fourth quarter, which ended June 30, 2021. Its total assets grew 33.5% year-over-year to $1.43 billion. Its total submitted policies came in at 133,411, representing a 50% year-over-year increase. Also, its approved policies were  117,226, up 43% year-over-year.

SLQT’s EPS is expected to be  $1.01 in its fiscal year 2022, representing a 23.2% year-over-year increase. In addition, it surpassed the consensus EPS estimates in three of the trailing four quarters. The company’s revenue is expected to increase 76.4% year-over-year to $937.82 million in its fiscal year 2021.

The stock has gained 38.5% in price since hitting its 52-week low of $7.72 on August 26, 2021, to close yesterday’s trading session at $11.20. Wall Street analysts expect the stock to hit $17.93 in the near term, which indicates a potential 60.1% upside.

GoHealth, Inc. (GOCO – Get Rating)

GOCO in Chicago is a health insurance marketplace and Medicare-focused digital health company. It operates through four segments: Medicare Internal; Medicare External; Individual and Family Plans and Other Internal; and Individual and Family Plans and Other External. Also…

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