Invest in the Most Intellectual Growth-Oriented Stock Valued at $25 Currently
In 2024, growth stocks have made a resurgence, with some climbing over 100% and 200%. This surge can instill a sense of fear in investors that they might miss out. However, this fear can lead to imprudent decisions, like investing in overpriced growth stocks. The recent market downturns in 2021 and 2022 serve as a stark reminder of the potential risks associated with such decisions.
Even in this new market bullishness, it's imperative not to make the same mistake of pouring resources into overvalued stocks. Yet, fear not, there are still lucrative growth stock opportunities available, even if capital is limited at the moment.
One such promising investment is Remitly Global (RELY) at a reasonable price of under $25 per share. I personally invested in this mid-cap fintech stock, believing it has several years of growth ahead.
Remitly's Genesis and Growth
Remitly was established with a bold vision to revolutionize the global remittance market in 2011. With the existing players overcharging for international transfers and neglecting innovative technologies like smartphones, the founders saw a chance to push the envelope with better tech and lower fees.
Initially, Remitly targeted high-traffic corridors such as the United States and Mexico, catering to American senders with an easy-to-use app and reduced transfer fees. On the receiving end — say, in India — Remitly partnered with local regulators, banks, and payment distributors to ensure simple cash pickup or delivery into recipients' hands if safety was a concern. This winning strategy led to a 35% yearly surge in active users to 7.3 million and an impressive 39% revenue increase to $336.5 million, surpassing competitor Western Union.
Unlocking Potential
Even with its current success, Remitly barely scratches the surface of its market potential. With only 3% market share globally and $336.5 million generated from non-American regions, there's significant headroom for expansion. Factors like product improvement, expansion to new corridors, and lower transfer fees as a result of scale will allow Remitly to further differentiate itself, catapulting its consumer value proposition and securing a larger market share.
Moreover, Remitly has set its sights beyond remittances. Its Remitly Circle app lets users store and earn interest on funds—a potential game-changer if it can attract and engage millions of users.
Why this is a Wise Growth Stock Investment
Remitly's stock has seen a 40% rise in the last month, but its market cap remains at $4 billion—leaving considerable room for further gains. Although not yet profitable, Remitly boasts a vigorous gross margin (nearing 60%) and an asset-light business structure. With profitability on the horizon, Remitly is poised to generate a 20% margin or more, making it a compelling growth stock proposition.
Most analysts share this optimistic view, forecasting Remitly to hit $2.5 billion in revenue within five years–an achievement supported by its current strong revenue growth rate. With a 20% profit margin at this level, the company could generate $500 million in earnings, translating to an attractive P/E ratio of 8 at its current market cap—basing it on its current value and future potential.
There's a reason investors always say, "buy low, sell high." As others chase fad growth stocks, take advantage of this undervalued gem—Remitly Global. Invest wisely and reap the rewards of the dominant remittance player of the next decade.
In light of the text discussing the growth potential of Remitly, a mid-cap fintech stock, it's crucial to approach investing in this sector with careful consideration of the company's financial health and market position. Carefully allocating money in the finance industry requires a thorough understanding of market trends and the company's unique value proposition.
The success of Remitly demonstrates that there are still lucrative investment opportunities in the growth stock market, even when capital is limited. With strategic investments, like Remitly, one can capitalize on the company's potential for growth, potentially leading to significant returns.
