3 Under the Radar Fintech Stocks to Consider Buying

NYSE: WNS | WNS (Holdings) Limited Sponsored ADR (Jersey) News, Ratings, and Charts

WNS – Donnelley Financial (DFIN), Everi Holdings (EVRI), and WNS Holdings (WNS) are 3 fintech stocks with considerable promise. Fintech is expected to grow at more than an 11% rate over the next decade, and these companies are building great businesses in the space.

One of the most exciting growth industries is fintech. Fintech, short for financial technology, is the application of technology to make financial processes easier, more efficient, transparent, faster, and more profitable. These goals are achieved through a variety of software platforms, apps, hardware solutions, and more. 

Currently, the fintech market is estimated to be worth $1.05 trillion but will expand at an 11.3% rate over the next few years to reach a size of $2.29 trillion by 2027. This type of size and growth means there will be tremendous opportunities for investors. 

Here are 3 under the radar fintech stocks that I believe investors should consider buying: Donnelley Financial (DFIN), Everi Holdings (EVRI), and WNS Holdings (WNS).

Donnelley Financial (DFIN)

DFIN was a spin-off from R.R. Donnelley and Sons (RRD) and is now worth more than its parent company. DFIN is a global risk and compliance solutions provider. It creates software that helps companies meet financial regulatory requirements in the US and abroad. Thus, DFIN’s products help reduce the cost and complexity that companies face when dealing with financial regulation. 

DFIN had very strong earnings in Q3, which sent shares higher by more than 50% since results were announced in early November. The company topped analysts’ expectations on the bottom line for the fourth straight quarter. The company reported $0.81 per share in earnings, while analysts were looking for $0.68 per share. Revenue topped expectations by more than 20%. 

Given this strong momentum, it’s not surprising that the stock is rated a B by the POWR Ratings, equating to a Buy. B-rated stocks have posted an annual performance of 19.7%, comparing favorably to the S&P 500’s 7.1% annual performance. 

DFIN also has a B for Growth. This is consistent with the company’s strong earnings report and also analysts hiking 2022 EPS estimates from $2 earlier this year to nearly $6 following the recent report. To see additional component grades for DFIN, click here

Everi Holdings (EVRI)

EVRI provides entertainment and technology solutions for the casino and digital gaming industries. The company has been doing well over the past year as online gambling has taken off with it becoming available in many states over the past decade. Some of its most well-known gaming products are mechanical and video reel games and slot tournaments.

However, the company’s fintech segment has more promise. The company has software products that help with the financial management and operations of a casino. Another growing segment is its software to help ensure regulatory compliance. 

The company’s momentum is evident with its latest earnings report which showed revenue growth of 51% and EPS going from a loss of $0.01 per share last year to a profit of $0.34 per share, beating expectations of a $0.10 per share profit. Revenue also topped expectations. The company is also projected to grow earnings by 95% over the next year.

Given this momentum, it’s not surprising that EVRI is rated an A by the POWR Ratings which equates to a Strong Buy. A-rated stocks have posted an annual performance of 30.7%, comparing favorably to the S&P 500’s 7.1% annual performance. 

EVRI also has strong marks across the board in terms of component grades. This includes B grades for Growth and Value since both metrics are above the market average. EVRI is currently ranked #4 out of 151 stocks in the Financial Services (Enterprise) industry. To see more of EVRI’s component grades, click here.

WNS Holdings (WNS)

WNS is based in India and is a business process management (BPM) company. It operates through two segments: WNS Global BPM and WNS Auto Claims BPM. The company offers custom solutions that are industry-specific. Some of its customers are in insurance, retail, telecom, and financial services. 

Some of the services it offers include finance and accounting, customer service, research, analytics, legal, and HR. However, its largest business is handling and processing claims and repair management centers for insurance companies in the US. 

The company is benefitting from a tight labor market which is leading to increased revenues and pricing power. The company is also benefiting from weakness in the Indian rupee which makes its services cheaper to foreign buyers. This is showing up in the company’s revenues, earnings, and free cash flow, all of which are at all-time highs. 

According to the POWR Ratings, WNS is rated B which equates to a Buy. B-rated stocks have posted an annual performance of 19.7%, comparing favorably to the S&P 500’s 7.1% annual performance. 

In terms of component grades, WNS has a Stability grade of B. This isn’t surprising as the company has established a track record of revenue, earnings, and free cash flow growth. It also has a Sentiment grade of A which is consistent with Wall Street analysts having a bullish view of the stock with 5 out of 6 analysts covering the stock rating it a Buy. To see more of WNS’ component grades, click here

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This article was written by Jaimini Desai, Chief Growth Strategist for StockNews.com.  Jaimini has been dialed into the hottest trends in investing:

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WNS shares were trading at $89.31 per share on Friday afternoon, up $1.24 (+1.41%). Year-to-date, WNS has gained 23.96%, versus a 26.16% rise in the benchmark S&P 500 index during the same period.

About the Author: Jaimini Desai

Jaimini Desai has been a financial writer and reporter for nearly a decade. His goal is to help readers identify risks and opportunities in the markets. He is the Chief Growth Strategist for StockNews.com and the editor of the POWR Growth and POWR Stocks Under $10 newsletters. Learn more about Jaimini’s background, along with links to his most recent articles. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
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EVRIGet RatingGet RatingGet Rating
DFINGet RatingGet RatingGet Rating

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