5 Best Growth Stocks Under $25

3. StoneCo Ltd. (NASDAQ:STNE)

Number of Hedge Fund Holders: 32

Share Price as of July 26: $13.20

P/E Ratio as of July 26: 1,320.50

StoneCo Ltd. (NASDAQ:STNE) is one of the best growth stocks to invest in. StoneCo Ltd. (NASDAQ:STNE) is a Brazil company that offers financial technology and software solutions to merchants and integrated partners. Its services enable electronic commerce transactions across various channels, including in-store, online, and mobile platforms. On May 17, StoneCo Ltd. (NASDAQ:STNE) reported a Q1 non-GAAP EPS of R$0.73 and a revenue of R$2.71 billion, up 30.9% year-over-year. In Q2 2023, total revenue and income are projected to exceed R$2,875 million, representing a year-over-year growth rate of over 24.8%.

According to Insider Monkey’s first quarter database, 32 hedge funds were bullish on StoneCo Ltd. (NASDAQ:STNE), compared to 35 funds in the earlier quarter. Steve Cohen’s Point72 Asset Management is the leading stakeholder of the company, with 12.2 million shares worth $116.6 million.

Nordstern Capital made the following comment about StoneCo Ltd. (NASDAQ:STNE) in its Q1 2023 investor letter:

“StoneCo Ltd. (NASDAQ:STNE): (STNE, share price increased + 1% in 1Q 2023)

The card association in Brazil have indicated that the industry should grow between 14% and 18% this year. And we expect to continue to gain market share.” – Thiago dos Santos Piao, Director and former CEO StoneCo Ltd

STNE’s transformation is progressing well. New key personnel have joined, the board and management have strengthened. Cash flows are growing, margins are increasing, the client base and market share keep expanding. The company is all set to restart its lending business in the second half of 2023.

In our view, despite all the changes, STNE still offers best-in-class service coupled with lower pricing than the industry and continues to drive high customer satisfaction…” (Click here to read the full text)