Fintech Stocks Are on Sale. This One Looks Like a Screaming Buy.

The Nasdaq Composite isn't even down 5% from its peak, but cracks are starting to show in the bull market that's driven the tech-heavy index to more than double over the last three years.

Consumer discretionary spending at places like Chipotle is waning as multiple fast-casual chains have pointed to weakness in the key 25-to-35 demographic, and footwear and apparel brands like Lululemon, Deckers, and Nike are struggling as well.

The housing market remains weak. AI infrastructure platforms like Coreweave and Nebius are now down sharply from earlier peaks, showing that enthusiasm for all things AI may have gotten overheated.

Additionally, fintech stocks have withered recently, amid concerns about higher loan losses at some regional banks, rising auto loan delinquencies, weakness in the labor market, and plunging consumer confidence.

As a result, fintech stocks have fallen nearly across the board, but that's set up a number of attractive buying opportunities. Keep reading to one stock that looks like a drop-dead bargain right now.

Image source: Getty Images.

Remittances are big business

Remitly Global (NASDAQ: RELY) has established itself as a leader in global remittances. As a digital-first platform, the company has grown rapidly as it's taken market share from traditional competitors like Western Union and MoneyGram.

Immigrants and businesses depend on the company for cross-border payments, and the company's push into the business market has expanded its total addressable market to a whopping $22 trillion.

Remitly delivered another round of strong growth in its third quarter, with active customers up 21% to 8.9 million, send volume up 35% to $19.5 million, and revenue increasing 25% to $419.5 million, which topped estimates at $413.8 million. Its take rate is declining, but that is by design as part of a strategy to serve more business and high-amount senders, which pay a lower rate.

The company is launching new products to expand its addressable market and find new ways to grow, including Remitly One, a $9.99 monthly membership program the company launched in September, allowing customers to "send now, pay later" up to $250 with no interest through Flex; earn 4% interest with Remitly Wallet, and spend directly with a Remitly Card with no foreign transaction fees, among other benefits.

The program looks like a smart way to lock in new customers, expand Remitly's use cases, and drive engagement with the platform.

On the bottom line, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 29% to $61.2 million, and the company reported a generally accepted accounting principles (GAAP) earnings per share of $0.04, up from $0.01 in the quarter a year ago.

Too cheap to ignore

Despite the strong results, the stock fell on the news, tumbling 25% on Nov. 6 after the report came out. The culprit appeared to be its guidance, which called for revenue growth to slow to 21% in the fourth quarter and projected high-teen revenue guidance for 2026.

After the sell-off, Remitly is now trading at its lowest point in nearly a year and a half, even as the business is delivering strong growth in all key metrics, is profitable, and is rolling out new products, including Remitly One.

Its price-to-sales ratio has now fallen to 1.7, which looks dirt cheap for a company with this kind of growth rate. The stock also trades at just 11 times its EBITDA forecast for the year of $234 million to $236 million.

It's also worth noting that Remitly makes most of its income from transaction fees, so its credit risk is much lower than for most fintech stocks. If the company can continue to grow on the top and bottom lines, the stock looks to have a bright future over the long term.

Jeremy Bowman has positions in Chipotle Mexican Grill, CoreWeave, Lululemon Athletica Inc., and Nike. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Deckers Outdoor, Lululemon Athletica Inc., and Nike. The Motley Fool recommends the following options: short December 2025 $45 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.