2 Top Fintech Stocks to Buy on the TSX Today

Consider buying these two top fintech stocks if you want to inject solid long-term growth potential into your self-directed investment portfolio.

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While the traditional banking system has been around for centuries, technological innovation is shaping a new future for the financial services industry. Fintech companies are the culmination of tech-based innovation in the finance sector that is rapidly changing the way we handle money and transact.

With newer platforms launching every year, it is one of the fastest-growing areas. As artificial intelligence (AI) introduces more innovations in every aspect of life, the fintech sector is expected to see accelerated growth in the future. Combined with machine learning technology, AI can make the fintech space more secure and expand the reach of financial services to more people than ever before.

Considering that this is a rapidly growing market, investing in high-quality Canadian fintech stocks can help you leverage the growth. Buying top-notch fintech stocks now and holding onto them can help you generate outstanding returns on your investment in the long run. Today, I will discuss two Canadian fintech stocks you should keep on your radar today.

Mogo

Mogo (TSX:MOGO) is a top fintech stock that you can buy on the dip right now. The $55.38 million market capitalization company headquartered in Vancouver provides consumers with a wide range of digitized financial services. Founded in 2003, it offers several products and services, including credit score monitoring, personal loans, and credit cards.

Between 2020 and 2022, its revenue grew by 56%, sending share prices soaring. However, the ongoing macroeconomic crunch is hurting small businesses worldwide, including Mogo stock. However, the company is cutting costs and increasing efficiencies to navigate the rough patch.

As the broader economic situation improves, Mogo stock is set to soar. As of this writing, it trades for $2.23 per share, down by a massive 420% from its 52-week high.

As alarming as the downturn is, investing in the stock right now can translate to at least four-fold returns if share prices rise to their 52-week high valuation and beyond.

Nuvei

Nuvei (TSX:NVEI) is the better established of the two fintech stocks. The $4.45 billion market capitalization company headquartered in Montreal provides electronic payment technology solutions to merchants worldwide. Considering the essential role it plays in tech-based financial solutions, it is one of the best fintech stocks to leverage the sector’s boom.

Between 2020 and 2022, Nuvei stock saw its revenue grow by 125%. Even as the pandemic subsided, demand for its services remained high, allowing the company to continue generating strong cash flows. Within the first three quarters of fiscal 2023, Nuvei saw its revenue grow by almost 40% from the same period last year.

As of this writing, Nuvei stock trades for $31.82 per share, down by 46.22% from its 52-week high. As the economic environment improves, Nuvei stock can become an excellent way to leverage the buying-on-the-dip strategy.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Nuvei Corp. made the list!

Foolish takeaway

While still a relatively newer market, the fintech sector is slated to boom in the coming years. Consumer habits are changing rapidly with the technological advances integrated into every aspect of their lives.

Getting ahead of the curve and establishing a position in top fintech stocks right now can help you leverage long-term, market-beating returns. To this end, Nuvei stock and Mogo stock can be excellent additions to your self-directed portfolio.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nuvei. The Motley Fool has a disclosure policy.

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