(NASDAQ: STNE) is a high-growth fintech that's been struggling in several ways over the past few years. It has made important progress recently, and its stock trades at a cheap valuation. Let's see what to expect over the next year, and whether this is a bargain or a value trap.

StoneCo is a Brazil-based fintech company focused on small business solutions, similar to Block's merchants' business. It has demonstrated meaningful sales growth over time, and although there was pressure early in the pandemic, it's now rebounded and landed in a strong place. Revenue increased 45% over the prior year in 2022 and 31% year over year in the 2023 first quarter. 

Adjusted net income increased from 43 million Brazilian reals ($9 million) last year to 237 Brazilian reals this year in the first quarter, with the adjusted net income margin increasing from 2.1% to 8.7%.

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Source Fool.com