The financial technology (fintech) sector has witnessed remarkable growth in recent years, with rising interest rates driving many fintech enterprises to expand their offerings. While some fintech firms faced challenges in adapting, others have successfully navigated the increasingly competitive landscape and emerged stronger. In this article, we will explore three fintech stocks that have shown resilience and potential: SoFi Technologies (SOFI -2.06%), American Express (AXP 0.15%), and PayPal (PYPL 1.89%). Let's delve into why these stocks might be worth considering for your investment portfolio.

Why These Stocks Stand Out

SoFi Technologies

SoFi offers an extensive range of financial services to its customers, encompassing checking and savings accounts, investment options, and loans. In the highly competitive online banking market, SoFi has managed to steadily increase its customer base and sales. During the third quarter (ending Sept. 30), SoFi's revenue witnessed a significant 30% growth, reaching $697 million. The addition of 756,000 new members, bringing the total membership to 9.4 million, represents an impressive 35% year-on-year increase. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) soared by 90% to $186.2 million. SoFi CEO Anthony Noto declared that this quarter was the "strongest in our history." With SoFi operating at full capacity, it's no wonder its stock has surged by 98% over the past year. However, it's important to note that this substantial share price increase has made SoFi's stock relatively expensive, with a forward price-to-earnings ratio of 78.1. Nevertheless, given its growing membership, sales, and earnings, long-term investors may find it appealing to acquire shares as the company continues to expand its presence in the fintech space.

American Express

Often regarded merely as a credit card company, American Express actually has a significant presence in the fintech market through its extensive payment system and fintech partnerships. This makes it an attractive option for investors seeking a compelling fintech investment. In the third quarter (ending Sept. 30), American Express achieved an 8% increase in sales, reaching $16.6 billion, and diluted earnings per share rose by 6% to $3.49. The growth was driven by 3.3 million new cardholders and a 6% increase in card member spending. The strong quarter led management to raise its full-year earnings guidance to $13.90 per share, up from $13.55. Not only is American Express growing at a healthy pace, but its stock also appears relatively inexpensive, with a forward P/E ratio of 19.8, which is significantly lower than the S&P 500 index's P/E ratio of about 30.9.

PayPal

PayPal deserves a place on this list as one of the leading online payment companies, with its Venmo app being one of the most popular person-to-person payment systems. With decades of experience in the fintech space, PayPal has amassed an impressive 432 million global users. In the third quarter (ending Oct. 29), although investors were initially concerned about the company's revenue growth, which was expected to see "low single-digit growth" compared to analysts' expectations of 5.4% growth, they overlooked the broader picture. PayPal's revenue actually increased by 6% to $7.8 billion, and non-GAAP earnings per share rose by 22% to $1.20. Additionally, PayPal is in a strong financial position, with free cash flow of $1.4 billion and cash and cash equivalents of $16.2 billion at the end of the quarter. This indicates that a seemingly slower-than-expected sales growth in one upcoming quarter should not undermine investors' confidence in the company. Moreover, PayPal's stock looks cheap, with a forward P/E ratio of only 18.4, making it the cheapest stock on this list and significantly less expensive than the broader S&P 500's P/E ratio of more than 30.