The stock market has posted double-digit percentage returns for three consecutive years, and it looks geared for another run. However, all of those rallies featured sharp corrections that looked like they could have been bear markets.
Investors can make the most money by accumulating shares of reliable growth stocks when others are running for the exits. In the event another correction or bear market takes shape, you won't want to miss out on these two fintech stocks.
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Robinhood is one of the fastest-growing fintech companies right now
Financial growth is a key criterion for outperforming the S&P 500. Combine strong revenue growth with rising profit margins, and you might have a long-term winner. Robinhood Markets (HOOD 3.27%) happens to check both of those boxes, and that's why the stock almost tripled in value in 2025.
Despite those impressive gains, the fintech stock looks primed for another rally this year. Robinhood doubled its revenue year over year in the third quarter while informing investors about its scorching-hot prediction market segment. Crypto continues to be a key catalyst, with that part of the business up by over 300% year over year.
NASDAQ: HOOD
Key Data Points
Robinhood has multiple high-growth business segments, and prediction markets look like the next top performer. After processing 2.3 billion contract trades in Q3, Robinhood traders have already completed 2.5 billion contract trades in October. That's more in one month than all of Q3, and the momentum may continue to build.
Higher demand for prediction markets, an investment opportunity that closely resembles sports betting, can boost transaction activity for Robinhood's additional assets, such as stocks and options.
Interactive Brokers is gaining market share while trading at an attractive valuation
Interactive Brokers (IBKR 1.89%) is another financial stock that is gaining momentum as investors become more active in financial markets. The brokerage firm reported a 67% year-over-year increase in stock trading volume, which contributed to overall revenue growth of 23% year over year.
NASDAQ: IBKR
Key Data Points
Net interest income made up roughly two-thirds of total sales and was up by 21% year over year. Higher interest income indicates more people feel confident borrowing against margin, and those same investors tend to make trades more frequently. Interactive Brokers told investors that customer margin loans reached $77.3 billion in Q3, which was up by 39% year over year.
Although Robinhood is growing at a faster rate, Interactive Brokers has a more attractive valuation. It only trades at a 26 forward P/E ratio, which should continue to get more attractive if Interactive Brokers manages to boost its revenue and profit margins.
More customers are flocking to Interactive Brokers, with low margin rates playing a key role. The company now has 4.13 million customer accounts, a 32% year-over-year increase.
As more customers create Interactive Brokers accounts, the brokerage firm's business segments should continue to perform well. Short-term corrections and bear markets can offer some trouble, but Interactive Brokers tends to come roaring back right when investors get excited about financial markets again.
