Some stocks mired in bear markets amount to no more than falling knives, meaning there's risk in trying to catch these battered names while they're faltering. On the other hand, some swooning stocks may be opening the door to opportunity for savvy investors.
Fintech company Shift4 Payments (FOUR 4.62%) may be in the latter, more positive category. After tumbling nearly 42% last year, the stock is off to a strong start in 2026, gaining almost 6% since the beginning of the year. In the context of the stock's 2025 slide, 6% doesn't sound like much, but hey, all rebounds need to start somewhere.
This fintech stock could pen a 2026 rebound story. Image source: Getty Images.
With short interest at 20.7%, more near-term upside in Shift4 shares could prompt some traders to cover those bearish bets, but the stock also has solid fundamentals underpinning the rebound thesis.
Shift4 can shift into high gear
Arguably lost in the shuffle of last year's decline is the value in Shift4's business model. While the company is 27 years old, which is ancient in fintech terms, it puts the "tech" in "fintech." Its payment platform integrates over 1,200 software solutions, indicating a high level of technological flexibility. That flexibility pays dividends.
At the ICR Conference on consumer trends earlier this month, Shift4 CEO David Lauber noted that the company spends a third of what its largest rival does to acquire restaurant industry customers. Speaking of customers, Shift4 is everywhere an investor would want a payments provider to be. It's the No. 2 company in the restaurant space and the "gold medalist" in hospitality, luxury retail, and sports stadiums.
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Key Data Points
In the luxury retail space, Shift4 customers include some of the largest European department store chains, Kate Spade owner Tapestry, and Lululemon Athletica.
Another potential tailwind for Shift4 is its increasing stablecoin footprint. Announced last month, Shift4's stablecoin settlement platform provides clients with access to faster payments and the ability to move their money outside of standard banking hours. If that platform takes off, it could contribute to a rebound in Shift4's shares.
