The past couple of years have been an uphill battle for fintech stocks. Despite strong underlying business performance, most names in the space have lagged the broader market’s recovery. However, the tide may soon be turning in favor of these beaten-down disruptors. Monetary policy looks destined to shift in short order. And when it does, wise investors will start to build positions in fintech stocks.
Indeed, I believe now presents an opportune time to buy into quality fintech companies. The next round of rate cuts provides a volume catalyst. And once banks become more amenable to partnering with these innovators, we could see a flood of pent-up demand unleashed. This surge will allow many fintech stocks to regain their former highs. In the case of these companies, I think the potential is there for triple-digit upside.
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