The Zacks Analyst Blog Visa, PayPal, American Express, Affirm and Fidelity National Information Services

For Immediate ReleasesChicago, IL – February 12, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include like Visa Inc. V, PayPal Holdings Inc. PYPL, American Express Co. AXP, Affirm Holdings Inc. AFRM and Fidelity National Information Services Inc. FIS.Here are highlights from Wednesday’s Analyst Blog:5 Must-Buy U.S. Financial Behemoths for the Long TermFinancial technology (fintech) represents a transformative investment space in a hybrid sector merging finance and technology. The companies featured in the space encompass a variety of services, such as online banking, peer-to-peer payments, insurance, cryptocurrency and cybersecurity, among others.They are relevant because they streamline financial services, apart from enhancing efficiency and security through innovations like mobile banking, online investing and payment processing.The financial technology space is expected to benefit from expanding transaction volumes resulting from the widespread adoption of digital means. The growing digitization movement, triggered by the pandemic, is a major catalyst for this industry.Here we recommend five fintech stocks with a favorable Zacks Rank to invest in and hold for the long term. These are Visa Inc., PayPal Holdings Inc., American Express Co., Affirm Holdings Inc. and Fidelity National Information Services Inc.Catalysts for the Fintech SpaceThe performance of the fintech space is inversely related to the movement of interest rates. In the last three years, fintech companies borrowed at a higher interest rate. This significantly affected their technological improvement and product innovation, a key to the success of this space.Nevertheless, the Federal Reserve reduced the benchmark interest rates by 1% in 2024 to the range of 4.25-4.5%. The CME FedWatch interest rate derivative tool currently shows more than 50% probability of two more rate cuts of 25 basis points each in the second half of 2025. A lower interest rate regime will immensely benefit fintech companies.Fintech's innovative nature positions it as a fascinating choice in the evolving financial landscape. With the expansion of mobile and broadband networks, fintech is poised for significant growth. Consumer behavior is shifting toward digital platforms, fueled by convenience and cost-effectiveness. Fintech’s adaptability to changing technological needs and its ability to meet diverse consumer demands underpin its robust future.The rise of artificial intelligence (AI) technologies and machine learning further revolutionizes banking, payments, and investments, offering efficient and secure financial solutions. Fintech companies offer exposure to a pioneering space that is redefining personal finance.Buy 5 Financial Technology Bigwigs for Long-Term HoldingThese five financial technology stocks have strong revenues and earnings growth potential for 2025. Moreover, these stocks have seen positive earnings estimate revisions over the past 30 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.VisaZacks Rank #2 Visa’s fiscal first-quarter earnings beat estimates by 3.4%. V’s strategic acquisitions and alliances are fostering long-term growth and consistently driving revenues. It expects net revenues to grow in low double-digits in fiscal 2025. V is fueled by continued increases in payments, cross-border volumes and sustained investments in technology and is witnessing significant profit growth.The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting its overall performance. With fraud cases on the rise and AI adoption increasing, V’s services are in high demand. V has embedded AI and generative AI into over 100 products, primarily for fraud prevention and cybersecurity.Visa has invested $3.5 billion in rebuilding its data platform. V’s technology helps prevent $40 billion in fraud attempts annually. Through strategic diversification, innovation, and AI-driven security, the company is well-positioned for long-term growth.Visa has an expected revenue and earnings growth rate of 10% and 12.1%, respectively, for the current year (ending September 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.5% in the past 30 days. V provides a return on equity (ROE) of 54.8% compared with 12.5% of the industry and 16.8% of the S&P 500 Index. The company has a current dividend yield of 0.7%.PayPal HoldingsZacks Rank #2 PayPal Holdings is benefiting from robust growth in total payment volume. Strengthening customer engagement on PYPL’s platform is a major positive. Venmo’s improving monetization efforts and rising adoption rate across various platforms are aiding total active accounts growth.The solid momentum of core peer-to-peer and PayPal Checkout experiences is a tailwind. Well-performing merchant services are also a positive. Strengthening presence in both the United States and international markets is contributing well. Accelerating transaction revenues of PYPL are likely to continue driving the top line.PayPal Holdings currently has an attractive valuation. PYPL currently has a forward P/E of 15.45X for the current financial year, compared with the industry’s 30.68X and the S&P 500’s 18.52X. PYPL has a P/S of 2.41X for the current financial year, compared with the industry’s 4.61X and the S&P 500’s 3.02X. It has a P/B of 3.75X for the current financial year, compared with 3.76X of the industry and 3.59X of the S&P 500.PayPal Holdings has an expected revenue and earnings growth rate of 3.8% and 7.5%, respectively, for the current year. The Zacks Consensus Estimate for the current-year earnings has improved 1.8% in the last seven days. PYPL provides a ROE of 23.7% compared with the industry’s -1.5% and the S&P 500’s 16.8%.American ExpressZacks Rank #2 American Express’ growth initiatives, like launching new products, reaching new agreements and forging alliances, are boosting its revenues. Consumer spending on travel and entertainment, which carries higher margins for AXP, is advancing well.American Express’ focus on Millennials and Gen-Z consumers, who exhibit strong dining preferences, will position the company for long-term growth. AXP’s solid cash-generation abilities enable the pursuit of business investments, share buybacks and dividend payments.American Express has an expected revenue and earnings growth rate of 18.7% and 14.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% in the past 30 days. AXP provides a ROE of 32.7% compared with 10.2% of the industry and 16.8% of the S&P 500 Index. The company has a current dividend yield of 0.9%.Affirm HoldingsZacks Rank #1 Affirm Holdings’ fiscal second-quarter 2025 earnings beat consensus estimates by a huge margin. AFRM has achieved strong revenue growth through diverse income streams, including merchant network fees, interest from loans and virtual card revenues. Growing active merchant numbers, improving gross merchandise value and average balance of loans are driving merchant network revenues and interest income.Key partnerships including those with Apple Pay and Hotels.com play a vital role in its expansion. AFRM has officially expanded to the United Kingdom, through a partnership with Alternative Airlines. Tapping into industries like travel, hospitality, and technology bodes well. AFRM’s shares are expected to offer substantial upside potential going forward.Affirm Holdings has an expected revenue and earnings growth rate of 35.2% and 3.5%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for the current-year earnings has improved 4.7% in the last seven days.Fidelity National Information ServicesZacks Rank #2 Fidelity National Information Services’ organic growth in the banking and capital market solutions is buoying its results. FIS’ strategic focus on digital transformation positions it to leverage global economic changes in the future.The launch of Atelio expands FIS’ footprint in embedded finance. FIS invests in technology and innovation across high-growth markets, to expand its total addressable market. Fidelity National Information Services’ inorganic growth strategy, focus on cryptocurrency and shareholder value-boosting efforts are commendable.Fidelity National Information Services has an expected revenue and earnings growth rate of 4.2% and 10.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% in the past 30 days. FIS currently has a forward P/E of 14.57X for the current financial year, compared with 16.02X of the industry and 18.52X of the S&P 500.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                     https://www.zacks.com                                                 Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Visa Inc. (V): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks