This Undervalued Buffett Stock Is the Cheapest It's Been In Years
Warren Buffett's stock picks often touch off lots of investor conversation. But not every stock in the Berkshire Hathaway portfolio captures investor interest. StoneCo (NASDAQ: STNE) is a Brazilian fintech company that doesn't appear to fit the usual Buffett-style approach to investing. It's a high-growth stock that hasn't looked like a great value -- until recently. Now that its price has tanked, down more than 70% since debuting on the market in 2019, it's trading at its cheapest valuation ever. Does that means investors should take a fresh look?
StoneCo markets e-commerce solutions for small and medium-sized businesses in Brazil. It does this through two operating segments: Financial services, which covers services such as payments and banking, and software, which offers full e-commerce solutions similar to Shopify.
Brazil is one of the largest e-commerce markets in the world, with a population of more than 200 million people. In 2021, e-commerce in Brazil increased 27%, and it's forecast to grow at a compound annual rate of 14.6% for the next few years. That puts StoneCo in an excellent position as it makes itself the top e-commerce solutions provider in the region.
Source Fool.com
