A Calamos fund manager recommends stocks from two small fintech companies. What drew him to them?

Investors should take a look at the stocks of two small companies that offer financial services through mobile apps—the neobank Dave and the insurance marketplace Ethos Technologies— according to Brandon Nelson, manager of the Calamos Timpani Small Cap Growth Fund. This fund specializes in investments in small companies with growth potential exceeding that of the market as a whole. Year-to-date, the Calamos Timpani Small Cap Growth Fund has returned 21.2%. By comparison, the Russell 2000 Index, the benchmark for small- and mid-cap companies, gained 12.3% over the same period.

What sets the neobank Dave apart is that it offers customers a “less burdensome” way to access services than traditional players, Calamos fund manager Brandon Nelson told MarketWatch. The company’s core business involves short-term lending: it primarily provides loans to people who are short on cash until their next paycheck—as an alternative to bank overdrafts. Dave evaluates borrowers in real time using its proprietary AI system, CashAI, without relying on traditional credit scores. At the end of the second quarter, the company’s revenue increased by 30% to $178 million. The Wall Street consensus forecast projects revenue growth of 32% in 2026, to $730 million, according to a MarketWatch article. Thirteen analysts recommend buying the company’s stock, while only two recommend holding it. The average price target of $445.3 implies growth potential of nearly 97% relative to the last closing price.

The Ethos Technologies insurance marketplace, which sells life insurance through its mobile app and ChatGPT, is “a new, likely undervalued, and under-the-radar name for investors,” according to Nelson. The company went public on Nasdaq in January 2026, and since then its stock price has risen 78% to $33.85 per share.

At the end of the second quarter, Ethos’s revenue increased by 113% year-over-year, to $190 million. “They have a unique model,” Nelson told MarketWatch. Buying life insurance can be a painful process not only for customers but also for agents, who may have to wait a long time for their commissions; “with Ethos, everything is faster,” the manager added.

The company's stock has nine ratings from Wall Street analysts, all of which are "buy." The average price target is $35.6, which is just 5% above the stock's most recent closing price.