MENU

3 rapidly growing fintech shares to supercharge your portfolio

One area of the market which I believe has huge potential for growth over the next few years is financial technology or “fintech”.

Although the United States and the United Kingdom may be leading the way, Australia is certainly no slouch when it comes to fintech. Three rapidly growing companies which I think investors should keep a very close eye on are listed below:

Afterpay Holdings Ltd (ASX: AFY)

Afterpay provides online retailers with the option to allow their customers to buy goods now, but pay for them later without interest or fees. The company takes a small percentage of the sale in exchange for bearing its default risk. Afterpay has been extending its service into bricks-and-mortar stores in recent months, with management advising that the results have been encouraging so far. Its growing list of clients includes the likes of Topshop, Optus, and Tony Bianco to name just three. I believe Afterpay is definitely worth keeping a close eye on.

Class Ltd (ASX: CL1)

Although the share price of this self-managed super fund software provider has risen 122% year-to-date, I still believe it is a great investment option. I was impressed with the company’s full year results. Thanks to a 37% lift in billable portfolios, Class was able to grow its net profit after tax by a whopping 71% to $5.8 million. With tailwinds from a growing superannuation system and the continuing popularity of operating SMSF structures, I believe Class has a bright future ahead of it.

Praemium Ltd (ASX: PPS)

Praemium is a global leader in the provision of investment administration, separately managed accounts, and financial planning technology platforms. The company has been growing at a rapid clip and currently administers over 300,000 investor accounts covering approximately $80 billion in funds globally. According to CommSec analysts are expecting Praemium to grow its earnings by a massive 131% per annum for the next couple of years. With its shares changing hands at 32x estimated FY 2017 earnings, I feel this is reasonably cheap considering its explosive growth prospects.

If you need to make room in your portfolio for them then I would highly recommend getting rid of these shares if you own them. Each could be acting as a drag on your portfolio and might be best swapped out.

3 Rotten Shares to Sell, and 1 to Buy Today

After a double-digit rally for the ASX since 2016 lows, investors should be on high alert. You'll find a full rundown below of 3 shares we think you should avoid today plus one top pick worth buying, even if the market turns south and the RBA keeps rates at an "emergency low." Simply click here to uncover these stocks.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Class Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.