Top 5 Fintech Stocks Set to Outperform Over the Next 12–36 Months

MELI • NU • SQ (Block) • PYPL • AFRM

Welcome back to Wealth Dome, where I build and protect wealth.

Today’s breakdown is all about Fintech — one of the fastest-growing sectors in the world.

I’ll walk you through:

* My Top 5 Fintech Stocks

* A complete $5,000 portfolio allocation

* Fundamentals + technicals

* Growth forecasts, risks, and ideal buy zones

* My personal weightings for each position

This is not financial advice, just how I would structure a high-conviction fintech portfolio with a 12–36 month outlook.

Let’s dive in.

⭐ 1. MercadoLibre (MELI) — Core Position, 40% Target Weight

MercadoLibre remains my #1 fintech pick, combining:

* 40–50% YoY fintech revenue growth

* MercadoPago processing billions monthly

* Growing credit portfolio with improving margins

* 50%+ gross margins in e-commerce

* One of the strongest ecosystem moats in Latin America

Think of MELI as:Amazon + PayPal + Shopify in a $600B emerging market.

Technical Outlook

* Consolidating after a pullback

* Uptrend intact on 5-year chart

* Ideal for long-term DCA

* Strong EPS growth: $41 (2025) → $125 (2028)

Risks

* FX volatility

* Competition: NU Bank, Shopee

* Valuation

My Allocation:

✔ 1 share✔ $2,058 → 41% of portfolio

⭐ 2. NU Holdings (NU) — 25% Target Weight

The fastest-growing neobank in the world.

Fundamentals

* 100M+ customers

* ROE above 30%

* Extremely low cost-to-serve

* Massive scale potential

EPS forecast

2025 → $0.602026 → $0.842027 → $1.092028 → $1.62

Buy Zones

* Best levels: $11–$13

* Current price: $15.30 (still strong long-term value)

Risks

* Credit defaults

* Valuation

* Regulatory uncertainty

My Allocation:

✔ 65 shares✔ $1,000 → 20% (after correcting earlier)

⭐ 3. Block (SQ) — 20% Target Weight

Block is a full fintech ecosystem:

* Cash App: huge user engagement

* Square: expanding merchant solutions

* Crypto integration

* Consistent gross profit growth

Technical Setup

* Oversold: RSI ~23

* Strong long-term support in the $50–$40 range

* High volatility = high opportunity

Risks

* Execution risk

* PayPal & Apple Pay competition

* Volatility is massive

My Allocation:

✔ 17 shares✔ $979 → 20%

⭐ 4. PayPal (PYPL) — 15% Target Weight

PayPal is no longer a hyper-growth stock — but it’s a value fintech play.

Strengths

* Strong cash flow

* Cost optimization

* High global adoption

* Dividend yield: 0.92%

Technical View

* Near long-term lows

* Almost oversold

* Great risk/reward for long-term value investors

Risks

* Losing users to Apple Pay & Block

* Margin compression

* CEO execution

My Allocation:

✔ 12 shares✔ $750 → 15%

⭐ 5. Affirm (AFRM) — 10% Target Weight

The purest BNPL (Buy Now Pay Later) stock in the U.S.

Strengths

* Amazon + Shopify partnerships

* Growing GMV

* Expanding merchant network

* Improving margins

Technical View

* Beautiful bullish trend

* Bouncing off 50-day MA

* Strong multi-year growth runway

Risks

* Very high volatility

* Credit risk

* Competition from Apple’s BNPL product

My Allocation:

✔ 3 shares✔ $197 → 10%

📊 Final Portfolio Summary

This is an aggressive fintech portfolio, optimized for growth in a 1–3 year window.

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