This sector that’s been struggling in recent years is about to break out

Fintech stocks have been in a rut since 2021. That may be about to change. Wolfe Research technical strategist Rob Ginsberg pointed out the Global X FinTech ETF (FINX) is close to reaching the $30 level for the first time since 2022. The fund is also trading back above its 50- and 200-day moving averages. While financials overall have done well recently, “fintech names have lagged, and appear to just be turning higher from a longer-term perspective. The FINX ETF illustrates this well. Not yet overbought, but clearly trying to breakout, $30+ should be in the cards.” The fund has struggled since November 2021, losing more than 46% in that time. That decline came as the Federal Reserve hiked interest rates to dent inflationary pressures. This year, the ETF has made some progress, rising more than 9%, as the Fed begins its policy easing campaign. It’s also up nearly 40% over the past 12 months. FINX mountain 2021-11-01 FINX since Nov. 2021 A breakout could have broader implications outside of fintech. For one, it may validate the stock market’s rally following the Fed’s rate cut last week. The S & P 500 hit a record on Tuesday along with the Dow Jones Industrial Average . The two benchmarks are up 20% and 12%, respectively, year to date. It could also signal that easing monetary policy may be doing what the Fed wants: boosting the economy. To be sure, the overnight rate remains in a range of 4.75%-5% — well above the near-zero levels seen in late 2021. For investors looking for exposure to fintech, CNBC Pro scanned the FINX fund for stocks that met the following criteria: Buy rating from 60% of analysts or more Upside to average price target of 10% or more Listed at the New York Stock Exchange or Nasdaq Covered by at least eight analysts Here are the stocks that made the cut. Flywire , Riot Platforms and Block are among the names on the list. Elsewhere on Wall Street this morning, Barclays upgraded Hewlett Packard Enterprise to overweight from equal weight. “We believe that HPE will continue to grow its AI server revenues, improve in storage, and we like the accretion from the [Juniper Networks] deal,” analyst Tim Long wrote. HPE agreed to buy Juniper Networks for about $14 billion. The acquisition is expected to close before year-end.