Why This Under-the-Radar Stock Is a Buy
Stock for the fintech company StoneCo (NASDAQ: STNE) generally flies under the radar for many U.S. investors for one reason -- it operates only in Brazil. Although Warren Buffett's Berkshire Hathaway invested in the IPO in late 2018, it is not exactly a household name in North America.
However, since that IPO, StoneCo has clearly turned into an emerging fintech stock. Given its massive growth, StoneCo will likely drive solid investor returns, not only by changing the culture of finance in Brazil, but possibly in the rest of Latin America as well.
U.S. investors should pay attention to StoneCo because it fulfills a need that many U.S. investors tend to take for granted. Brazil, like most countries in Latin America, is primarily a cash-based society. According to a report by McKinsey, a large percentage of the population does not hold a bank account, credit card, or debit card. This presents a challenge in a retailing world moving heavily toward e-commerce platforms that cannot accept cash.
Source Fool.com
