2 Fintech Stocks to Buy After They Raised Their 2026 Forecasts in October
Here's how their growth, risks, and valuations compare for investors weighing a buy.
SoFi Technologies (SOFI) and PayPal Holdings (PYPL) both increased their 2026 forecasts in October, indicating renewed optimism in their growth prospects. Among the two, SoFi appears to hold better growth potential and makes a stronger case for buying the stock. SoFi has been rapidly building an all-in-one online financial services platform, with a recent quarter adding a record 1.2 million customers, bringing its total to 17.1 million.
Moreover, customers are using multiple products, adding more revenue opportunities. SoFi has raised its 2026 adjusted net revenue forecast to approximately $5 billion and reaffirmed its 2027 adjusted EPS forecast of $0.90, suggesting strong growth potential. However, the company faces risks such as consumer credit conditions, loan defaults, interest rate changes, and competition.
On the other hand, PayPal boasts an established global network of consumers and merchants, with its branded checkout service being widely recognized. The company is expanding its presence in buy now, pay later (BNPL), mobile payments, and merchant services. PayPal has revised its 2026 non-GAAP EPS outlook to about $5.60, signaling increased confidence in cost-efficiency initiatives and profitable growth.
While PayPal faces challenges like intense competition in its branded checkout business and modest revenue growth, it still offers an attractive turnaround opportunity for value seekers, given its low forward P/E of 9.7 times. Overall, SoFi presents a higher-risk, higher-reward option for growth-focused investors, while PayPal provides a safer choice for value-oriented investors.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
