NU - StoneCo Stock: The Dip Looks Tempting
2024-07-08 16:13:19 ET
Summary
- StoneCo's stock price has fallen significantly and underperformed the market since the last analysis.
- Despite slowing revenue growth, StoneCo's current valuation reflects a significant discount, making the stock attractive.
- Analysts predict strong EPS growth for StoneCo, making it a potentially lucrative investment opportunity.
- I believe that the current dip in the StoneCo stock is not accompanied by a corresponding deterioration in the company's fundamentals.
Intro & Thesis
I initiated coverage of StoneCo Ltd. ( STNE ) on August 12, 2023 , when the stock was trading at $13.52. Since then, STNE has moved in a wide trading range, occasionally trying to move higher but encountering strong resistance. In my last article , I argued that the company's improving margins and the stock's lack of movement, due to some misunderstanding, made STNE's valuation more attractive. Since then, however, STNE's stock price has fallen significantly and has underperformed the broader market....
StoneCo Stock: The Dip Looks Tempting