In this article, we will look at the 7 Most Undervalued Fintech Stocks to Buy Now.
On January 16, Mizuho analyst Dan Dolev released a note highlighting that Fintech, payments, and crypto have entered 2026 with major product, political, and macro environment catalysts. The market experienced volatility as President Trump proposed a 10% APR cap to support the Credit Card Competition Act. However, Dan noted that the cap might actually benefit network and BNPL companies. He added that the 10% cap will result in a shift from credit to BNPL, which can drive incremental debit volumes.
Dan highlighted some themes emerging for the sector shaping the performance in 2026. He noted that a lower-rate macro environment provides relief for payment processors, lenders, and trading platforms. Moreover, Dan also noted that many fintech companies also benefit from cheaper funding and stronger demand. He likes the regulatory clarity regarding crypto with USD-backed stable coins. Lastly, Dan quoted prediction markets as an emerging theme for the sector, which has the potential to become a meaningful growth engine for fintech companies and platforms.
With that, let’s take a look at the 7 Most Undervalued Fintech Stocks to Buy Now.
Our Methodology
To curate the list of 7 Most Undervalued Fintech Stocks to Buy Now, we used the Finviz Stock Screener and the Global X FinTech ETF. Using these two sources, we aggregated a list of Fintech stocks trading below the forward P/E ratio of 15. Next, we cross-checked the P/E ratio from Seeking Alpha and ranked the stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey’s Q3 2025 database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
7 Most Undervalued Fintech Stocks to Buy Now
7. Euronet Worldwide, Inc. (NASDAQ:EEFT)
FWD P/E Ratio: 7.38
Number of Hedge Funds: 30
Euronet Worldwide, Inc. (NASDAQ:EEFT) is one of the Most Undervalued Fintech Stocks to Buy Now. On January 8, Wolfe Research downgraded Euronet Worldwide, Inc. (NASDAQ:EEFT) from Peer perform to Underperform, with a price target of $80. Earlier, on January 5, Monness downgraded the stock from Buy to Hold without disclosing any price targets.
Analysts at Wolfe Research noted that the downgrade is based on concerns regarding the structural pressures for payment service providers. The firm believes that these pressures are limiting revenue growth for service providers. Wolfe noted that the company faces challenges in the European ATM business, where the cash-to-card conversion trend is rising. Moreover, the immigration headwinds also pose a threat to the company’s retail remittance business. The firm believes that these challenges raise concerns regarding Euronet Worldwide, Inc.’s (NASDAQ:EEFT) growth prospects, despite its previous execution in difficult markets.
Similarly, Moness also raised concerns regarding the increasing pressure from independent channels. The firm added that the competitive pressure raises questions regarding the company’s long-term growth rates.
Euronet Worldwide, Inc. (NASDAQ:EEFT) is a global financial technology company offering payment solutions across three segments: Electronic Funds Transfer (EFT), epay, and Money Transfer.
6. PagSeguro Digital Ltd. (NYSE:PAGS)
FWD P/E Ratio: 7.08
Number of Hedge Funds: 31
PagSeguro Digital Ltd. (NYSE:PAGS) is one of the Most Undervalued Fintech Stocks to Buy Now. PagSeguro Digital Ltd. (NYSE:PAGS) is set to release its fiscal Q4 2025 earnings on March 5. Wall Street expects the company to post a quarterly revenue of roughly $981.30 million, along with an EPS of $0.39.
Recently, on December 16, Mario Pierry from Bank of America Securities reiterated a Buy rating on the stock with a price target of $13. The analyst noted that the rating is based on the company’s strategic initiatives. Pierry likes the strategic focus of the newly appointed CEO and CFO to increase the company’s loan book significantly by 2029. Management plans to achieve this by securing working capital loans. BofA noted that while this strategy has some near-term challenges, including limited earnings growth, the long-term prospects remain promising.
BofA added that the new management brings in retail banking expertise and has improved credit models and collection capabilities. The firm also likes the use of AI in speeding up the process of credit underwriting.
PagSeguro Digital Ltd. (NYSE:PAGS) is a financial services and digital payments company that is primarily focused on serving consumers, individual entrepreneurs, micro-merchants, small companies, and medium-sized companies in Brazil.
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