The markets just took a noticeable tumble. Nowhere was this more evident than in the frothy corners of the market: The high-flying, speculative stocks where greed overtook fundamentals and valuations. So, where’s the opportunity right now? I’m bullish on fintech stocks like BGC Group Inc. (BGC), advises Steve Reitmeister, editor of Zen Investor.
Fintech stocks represent a unique overlap between traditional finance stocks and cutting-edge technology. The sector is rapidly transforming banking, lending, and payments — to the tune of projected 17% annual growth and an expected worth of $1 trillion by 2032.
BGC Group Inc. (BGC)
(Editor’s Note: Steve Reitmeister is speaking at our Better Investing, Smarter Trading Summit March 11-12, 2025. Register to see him HERE.)
With 20%+ revenue growth and 35% margins — nearly triple the S&P 500 — fintech stands to gain from falling rates, potential deregulation, and AI advancements in the financial realm. From an investing perspective, some of the biggest tech winners in history have a consistent formula: Strong revenue growth, a constantly expanding TAM, and juicy margins.
BGC Group was spun off from Cantor Fitzgerald in 2004. It is a fintech and brokerage firm, clearing trades in bonds, forex, and equities while expanding into energy, derivatives, and crypto.
Here’s a fun fact: Current Commerce Secretary Howard Lutnick is the former CEO of BGC. He played a key role in its growth.
With institutional clients like banks, hedge funds, and governments, the firm stands to gain from deregulation, as compliance is a major cost. AI advancements will enhance execution and product offerings, while lower rates should boost trading volumes, particularly in fixed income and futures, driving growth for BGC.
With a Zen Rating of A (Strong Buy), BGC ranks in the 98th percentile of the 4,500+ stocks we track. These are elite stocks that have averaged annual returns of 32.5% over the past 22 years, far outpacing the S&P 500’s average annual return of 10.5%.
Recommended Action: Buy BGC.
