Two fintech stocks you should buy at the recent market pullback

0

An 8.0% hit to the S&P 500 over the past couple of weeks has created quite a few buying opportunities, says Karen Firestone. She’s the Chairman and CEO of Aureus Asset Management.

Firestone likes CME Group Inc here

A name she’s convinced is worth owning here is CME Group Inc (NASDAQ: CME) that offers growth but a reasonable valuation of about 25 times forward. On CNBC’s “Squawk Box”, Firestone said:

The stock is down 15%, earnings estimates are going higher. We think CME Group over the next couple of quarters will show some really good results. So, it’s defensive, but it’s also growing nicely.

The Chicago-based company handily topped Street estimates in its latest reported quarter and recently launched euro futures on major cryptocurrencies.

At $196 a share, the stock is up only a little from its 52-week low.

Firestone is also bullish on PayPal shares

Another one she likes is PayPal Holdings Inc (NASDAQ: PYPL) that’s been a big disappointment over the past 13 months as COVID restrictions continues to ease. Still, Firestone said:

It trades at 20 times next year’s earnings. It’ll grow earnings more than that. We’ve got Elliott on their heels, trying to get them to cut costs. They committed to $900 million in cost savings and sales are picking up.

Earlier this month, activist investor Elliott Management confirmed a $2.0 billion stake in PayPal that recently announced a $15 billion share repurchase programme and named Blake Jorgensen its new CFO.

Also on Wednesday, the Bank of America recommended buying PayPal shares as they have upside to $114.    

The post Two fintech stocks you should buy at the recent market pullback appeared first on Invezz.