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.
5. Joint Stock Company Kaspi.kz (NASDAQ:KSPI)
FWD P/E Ratio: 6.95
Number of Hedge Funds: 40
Joint Stock Company Kaspi.kz (NASDAQ:KSPI) is one of the Most Undervalued Fintech Stocks to Buy Now. On January 8, Wolfe Research reiterated a Buy rating on Joint Stock Company Kaspi.kz (NASDAQ:KSPI) with a price target of $95. Earlier on December 4, J.P. Morgan reiterated a Hold rating on the stock but lowered the price target from $96 to $88.
J.P. Morgan noted that the cautious rating reflects the firm’s outlook on the financial technology stocks. The firm expects 2026 to be a year of a softer landing as it sees the real growth slowing throughout the year. J.P. Morgan noted that the growth is expected to slow down due to the lagged impact of tariffs and the weak labor market. On the bright side, the firm noted that this is expected to be partially offset by tax cuts.
Joint Stock Company Kaspi.kz (NASDAQ:KSPI) is set to release its fiscal Q4 2025 results on February 24. Wall Street expects the quarterly revenue to be roughly around $2.31 billion, along with a GAAP EPS of $3.12.
Joint Stock Company Kaspi.kz (NASDAQ:KSPI), together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in Kazakhstan, Azerbaijan, and Ukraine. It operates in three segments: Payments, Marketplace, and Fintech.
4. Global Payments Inc. (NYSE:GPN)
FWD P/E Ratio: 6.35
Number of Hedge Funds: 53
Global Payments Inc. (NYSE:GPN) is one of the Most Undervalued Fintech Stocks to Buy Now. On January 14, Jeff Cantwell from Seaport Global upgraded the stock from Hold to Buy with a $109 price target. On the same day, Nate Svensson from Deutsche Bank initiated Global Payments Inc. (NYSE:GPN) with a Hold rating and a $80 price target.
The mixed analyst sentiment on the stock comes after the company, on January 12, announced the acquisition of Worldpay and divestiture of Issuer Solutions business. Cantwell from Seaport Global noted that the bullish sentiment is based on Global Payments Inc. (NYSE:GPN) moving past the 2025 transition year.
The analyst added that the integration of Worldpay into the operations gives the company a good start for 2026. The firm sees strong upside potential in the combination of Global Payments, Worldpay, and Genius businesses. The Genius business is expected to help Worldpay’s relevance with small and medium-sized businesses. The firm expects it can support merchants from single locations up to those with 500 sites.
Global Payments Inc. (NYSE:GPN) is a payments technology company that provides software and services to customers worldwide, enabling them to operate their businesses more efficiently across a variety of channels.
3. Fidelity National Information Services (NYSE:FIS)
FWD P/E Ratio: 10.99
Number of Hedge Funds: 57
Fidelity National Information Services (NYSE:FIS) is one of the Most Undervalued Fintech Stocks to Buy Now. On January 16, Charles Nabhan from Stephens reiterated a Buy rating on the stock and lowered the price target from $90 to $85. Earlier, on January 15, Nate Svensson from Deutsche Bank initiated Fidelity National Information Services (NYSE:FIS) with a Hold rating and a $70 price target.
Analysts from Stephens noted that the firm remains bullish on the payments and IT services sector as part of their 2026 outlook. The firm highlighted that 2025 was particularly challenging for the sector, but they expect sentiment to shift towards payment stocks in 2026.
On the other hand, Nate from Deutsche Bank noted that they initiated coverage of Fidelity National Information Services (NYSE:FIS) after the company announced the acquisition of Global Payments on January 12. The analyst sees this move as a clever asset sweep. Moreover, the analyst also liked the company’s move to sell its 45% non-controlling stake in Worldpay for a high-margin, cash-generative asset.
Fidelity National Information Services, Inc. (NYSE:FIS) provides financial technology for banks, merchants, and capital markets firms, with platforms spanning core processing, digital banking, payments, and related services used to run and modernize money movement.
2. Fiserv, Inc. (NASDAQ:FISV)
FWD P/E Ratio: 7.77
Number of Hedge Funds: 83
Fiserv, Inc. (NASDAQ:FISV) is one of the Most Undervalued Fintech Stocks to Buy Now. On January 12, Bryan Bergin from TD Cowen reiterated a Hold rating on the stock and lowered the firm’s price target from $80 to $77. Earlier, on January 8, Darrin Peller from Wolfe Research also reiterated a Hold rating on the stock without disclosing any price targets.
TD Cowen noted that the adjusted price target for Fiserv, Inc. (NASDAQ:FISV) reflects the firm’s view of the payments group as part of their Q4 preview. The firm noted that they expect companies in the payment group to start 2026 with strong fundamentals; however, the sentiment remains cautious. Moreover, analysts at TD Cowen also noted that they do not expect upcoming Q4 earnings to be a material catalyst for most of the companies in this group.
That said, on January 8, Fiserv, Inc. (NASDAQ:FISV) announced its collaboration with Microsoft to integrate AI more extensively into the company’s operations. Management noted that the integration is expected to boost internal efficiency and AI-enhanced solutions to clients like banks, businesses, and consumers. This builds on the company’s existing collaboration with Microsoft.
Fiserv, Inc. (NASDAQ:FISV) works as a global leader in payments and financial technology.
1. PayPal Holdings, Inc. (NASDAQ:PYPL)
FWD P/E Ratio: 10.60
Number of Hedge Funds: 86
PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the Most Undervalued Fintech Stocks to Buy Now. On January 16, Charles Nabhan from Stephens reiterated a Hold rating on the stock and lowered the price target from $75 to $65. A day earlier, on January 15, Raymond James maintained a Hold rating on PayPal Holdings, Inc. (NASDAQ:PYPL) without disclosing any price target.
Analysts at Raymond James noted that they are adjusting estimates as the company approaches its fiscal Q4 2025 earnings release. The firm highlighted lowering Branded Total Payment Volume growth estimates by 300 basis points to 2% for the quarter. This is based on the management’s comments, which pointed out that Branded growth is expected to slow in Q4. Raymond James expects the slower low single-digit growth to persist for the first half of 2026, due to macroeconomic pressures and slower adoption of new products.
Stephens also remains cautious on PayPal Holdings, Inc. (NASDAQ:PYPL). The firm noted that 2025 was a challenging year for the fintech sector. However, the firm sees an improvement in investor sentiment for the sector and anticipates better returns during 2026.
PayPal Holdings, Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments for merchants and consumers.
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