Priya PatelTLDR:
- StoneCo, a Brazil-based financial technology company, has seen a stock plunge of 80% from its 2021 high due to issues with its lending business.
- Although the company took significant losses on bad loans, it has started offering new loans through its credit unit again and its payment processing business is showing strong results.
The Motley Fool discusses how StoneCo has the potential to be a dirt-cheap growth stock at current prices, with a forward-looking P/E ratio of 12. Despite management turnover and a lack of significant growth track record, the company’s recent numbers show promise.
StoneCo’s total revenue increased by 25.2% year over year in the third quarter, with adjusted income skyrocketing by 302%. The company has also increased its customer base and average transaction fee, indicating positive growth in its payment processing business.
In addition, the article discusses important financial concepts like wash sales and the Rule of 72. It also highlights the importance of having adequate homeowners insurance coverage, including tips on how to review and ensure sufficient coverage.
Overall, the article suggests that StoneCo’s current low valuation presents an opportunity for investors looking for growth potential at a discounted price.
