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Daily Alert - 2/19/20

This software company is expected to grow more than 43% next year.

This software company is expected to grow more than 43% next year.

StoneCo Ltd. (STNE)
From The Wealth Advisory

StoneCo Ltd. (STNE) is the Square of Brazil. It’s a payment processor that gets a piece of each transaction and it focuses on the mostly unserved market of small to medium-sized business.

Wealth Advisory Earnings Grade: B+

StoneCo kept the rally alive in December. Management reported stellar numbers in November
and sent shares spiking up. We’re now well above my new limit (which is just $10 shy of my original target price). So, I’m boosting that to make sure we’ve all got a chance to get in. Now that shares are above $40, I see them cruising over $50 in short order. So, let’s boost the limit to $45 and see if we can capture some more gains.

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StoneCo Ltd. is now a “Buy” anywhere under $45. The 12-month target is staying at $75.

Brit Ryle and Jason Williams, The Wealth Advisory, www.angelpub.com, 877-303-4529, January 2020