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Is StoneCo Ltd. (STNE) The Best Performing Fintech Stock to Buy According to Analysts?

We recently compiled a list of the 10 Best Performing Fintech Stocks to Buy According to Analysts. In this article, we are going to take a look at where StoneCo Ltd. (NASDAQ:STNE) stands against the other best-performing fintech stocks.

Fintech, or financial technology, is transforming the way the world handles money. It is making financial services faster, more accessible, affordable, and user-friendly. The fintech sector is experiencing rapid growth driven by several key trends. These trends include the adoption of artificial intelligence (AI) and the rise of e-commerce. These factors are driving growth and supporting the demand for innovative payment solutions, embedded finance, and secure transaction technologies. Embedded finance, which involves integrating financial services into everyday digital experience, is becoming essential for businesses to stay competitive and apart from e-commerce, it is becoming especially important for sectors like healthcare, education, and real estate.

READ ALSO: 10 Best 5G Stocks to Invest in According to Analysts and 10 Best Blockchain Stocks to Buy According to Analysts.

According to a report by IMARC Group, the global fintech market was valued at $218.8 billion in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 15.82% during 2025-2033 to reach a value of $828.4 billion by the end of the forecast period. In 2024, North America dominated the fintech market, accounting for more than 35.8% of the market share.

From digital payments and fraud prevention to AI-powered insurance and blockchain technology, fintech continues to revolutionize traditional finance. With new and innovative solutions that fintech offers, it is no surprise that fintech is becoming increasingly popular, especially among younger generations who prefer using smartphones or laptops for tasks like making payments, investing, or even seeking financial advice.

Traditional financial institutions are also investing heavily in fintech products to stay relevant. This has made fintech a high-growth industry, which presents a significant opportunity for investors to invest in companies that are leading financial innovation.

Methodology

To compile our list of the 10 best-performing fintech stocks to buy according to analysts, we looked for the biggest fintech companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best fintech stocks. Then we looked for the best-performing stocks in the fintech sector and narrowed down our list to stocks that have gained at least 8% year-to-date as of February 26, 2025. Next, we focused on the top fintech stocks that analysts believe have the most potential for growth. Finally, we ranked the 10 best-performing fintech stocks to buy based on their average price target upside potential according to analysts as of February 26, 2025.

Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.

Why do we care about what hedge funds do? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A team of software engineers in a digital workspace collaborating on a financial technology software solution.

StoneCo Ltd. (NASDAQ:STNE)

Year-to-Date Performance: 17.04%

Average Price Target Upside Potential According to Analysts: 49.32%

Number of Hedge Fund Holders: 24

StoneCo Ltd. (NASDAQ:STNE) is a financial technology company that provides a range of products and services that help merchants and integrated partners to conduct electronic commerce in Brazil. The company offers a range of fintech and software solutions, including advanced point-of-sale (POS) systems, mobile payment applications, online payment gateways, and a variety of merchant services designed to streamline payment processing across in-store, online, and mobile channels. StoneCo Ltd. (NASDAQ:STNE) ranks among the best-performing stocks in the fintech sector.

The company is strategically focused on serving micro, small, and medium-sized businesses (MSMBs). By providing digital financial services to these businesses, StoneCo Ltd. (NASDAQ:STNE) is fueling Brazil’s transition to a cashless economy. In the third quarter of 2024, the company reported a 20% year-over-year increase in MSMB total payment volume, which reached BRL 114 billion. The company served 4 million active MSMB clients in the quarter, up 21% year-over-year. StoneCo Ltd. (NASDAQ:STNE) also reported a record take rate for MSMBs of 2.58%. The company is successfully enhancing its profitability while also gaining market share in the MSMB market.

Overall, STNE ranks 2nd on our list of the best-performing fintech stocks to buy according to analysts. While we acknowledge the potential of STNE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STNE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.

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