Fintech stocks soared during the peak of the meme- and growth-stock rallies in 2021, but many of those stocks stumbled over the following two years as interest rates rose. Those higher rates curbed economic growth and lending, while higher yields on fixed-income investments like CDs pulled investors away from riskier growth stocks.

But with interest rates expected to stabilize and potentially decline over the next few quarters, investors should consider buying a few out-of-favor fintech stocks that now seem undervalued relative to their growth potential. I believe Nu Holdings (NYSE: NU), Upstart (NASDAQ: UPST), and Affirm (NASDAQ: AFRM) check all the right boxes, making these three fintech stocks potential buys right now.

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Source Fool.com