Written by Jitendra Parashar at The Motley Fool Canada
Fintech is fast changing the way we handle money and do banking transactions, making it one of the fastest-growing areas that benefits from new tech like smartphone apps and online security. Fintech is expected to grow even faster in the future with the help of artificial intelligence and machine learning, as these new technologies could make the fintech space more secure and expand its reach to people who might not have had easy access to a range of financial services before.
Given that, it makes sense for investors to consider investing in some quality Canadian fintech stocks, as they can help investors get some outstanding returns on their investments in the long run.
In this article, I’ll highlight two top fintech stocks you can buy on the TSX today to hold for years to come.
Nuvei (TSX:NVEI) could be one of the best stocks to consider on the TSX today for investors seeking to benefit from the upcoming fintech boom. This Montréal headquartered company primarily focuses on providing electronic payment technology solutions to merchants across the globe. NVEI stock currently has a market cap of $3.7 billion, as it trades at $27.11 per share after losing nearly 21% of its value so far in 2023.
In the two years between 2020 and 2022, Nuvei’s total revenue jumped 125% from US$375 million to US$843.3 billion, as the demand for its services remained firm in the post-pandemic era. With this, the company’s adjusted annual earnings also soared 121% from US$0.83 per share in 2020 to US$1.86 per share in 2022.
While in the first three quarters of 2023, the fintech firm’s revenue has grown positively by 39.4% YoY (year over year), negative factors, including rising net finance cost and currency headwinds, drove its earnings down by about 13% YoY during the same period. Although the ongoing macroeconomic challenges have hampered Nuvei’s financial growth in recent quarters, the gradually improving economic environment is likely to accelerate its financial growth in the coming years, making this fintech stock very attractive to buy on the dip.
Mogo (TSX:MOGO) is another top TSX fintech stock you can consider buying on the dip today. This Vancouver-headquartered company is known for providing its consumers with a variety of digital finance services, including credit cards, personal loans, and credit score monitoring. It currently has a market cap of around $40 million as MOGO stock trades at $1.61 per share after sliding by 28.4% year to date.
In the two years between 2020 and 2022, Mogo’s revenue grew positively by about 56% to $68.9 million. As the ongoing macroeconomic concerns continue to hurt businesses across the globe, small companies like Mogo need to take proactive steps to strengthen their financial position to help them navigate the period of economic uncertainty. And this is exactly what Mogo seems to be doing of late. In the last year, the company has taken some tough decisions to trim its focus on sub-scale and unprofitable products.
While these strategic decisions are affecting its financial growth in the ongoing year, they might pay off well in the long run by strengthening its balance sheet and steering it faster toward sustainable profitability. Considering that, Mogo could be an attractive fintech stock to buy on the TSX today, especially after its recent big losses.
Before you consider Mogo Inc., you'll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in November 2023... and Mogo Inc. wasn't on the list.
The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 24 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks * Returns as of 11/14/23