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2 Fintech Stocks That Could Grow Your Portfolio

By Jose Najarro - Updated Jun 16, 2021 at 7:41AM

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One is a recent IPO, and the other can give investors international exposure.

In today's video, I look at fundamentals and valuation metrics for Upstart (UPST -4.83%) and StoneCo (STNE 0.33%). Below I share a few highlights from the video on why investors should add them to their watch lists. 

Two reasons to add Upstart to your watch list

  1. Upstart is a growing online lending platform company that uses artificial intelligence to automate the lending process. It reported 121% year-over-year (YOY) revenue growth, and 71% of loans were fully automated and instantly approved for the first quarter of 2021.
  2. For the first quarter of 2021, 96% of Upstart's revenue came from fees it collected from banks or services; so even though it is a lending platform, it has no credit exposure, as stated in its most recent earnings presentation. 

Two reasons to add StoneCo to your watch list

  1. StoneCo is a growing payment solutions company in Brazil. It provides solutions like point-of-sale systems, online payment solutions, finance management, e-commerce solutions, and much more. It reported 21% YOY revenue growth, and total payment volume grew 35% YOY for the first quarter of 2021.
  2. StoneCo has solid fundamentals for its trailing 12 months. It has positive earnings and substantially more cash and short-term investments than debt.

Click the video below for my full thoughts and analysis. 

*Stock prices used were the mid-day prices of June 14, 2021. The video was published on June 14, 2021. 

 

Jose Najarro owns shares of Stoneco LTD. The Motley Fool owns shares of and recommends Stoneco LTD and Upstart Holdings, Inc. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

StoneCo Ltd. Stock Quote
StoneCo Ltd.
STNE
$12.10 (0.33%) $0.04
Upstart Holdings, Inc. Stock Quote
Upstart Holdings, Inc.
UPST
$33.08 (-4.83%) $-1.68

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