NU - StoneCo: A Very Rare Find At This Price
2024-03-10 08:43:28 ET
Summary
- StoneCo is a growing fintech company in Brazil, providing payments, banking, software, and credit solutions to micro, small, and medium-sized businesses.
- The company has shown strong revenue growth and improving financial results, and sports a reasonable valuation of 18x net income.
- StoneCo has opportunities for further growth in the Brazilian market, and if its upcoming earnings report is strong, it could trigger multiple expansion in the stock.
- With technical momentum finally shifting to the upside, we rate STNE stock a "Strong Buy", and see 17%-22% annualized potential upside from now until 2026.
A few weeks ago, we wrote an article about Nubank ( NU ), talking about the many distinct advantages that make that company such a compelling growth investment for the next decade-plus in Brazil and beyond.
In the comments, many mentioned that they were also long StoneCo ( STNE ), and so we thought we'd follow up with some more coverage of the Brazilian / Latam fintech space....
StoneCo: A Very Rare Find At This Price