The Sleeper Fintech Stock That Could Surge Before Wall Street Notices

Core Viewpoint - The fintech stock Block is currently trading 77% below its all-time high established in August 2021, indicating a potential investment opportunity as it may surge before Wall Street takes notice [2]. Valuation - Block's shares are trading at an attractive EV-to-EBIT ratio of 15.1, making it a compelling valuation in a market where valuation is a significant concern [3]. - A lower valuation multiple provides a margin of safety for investors, minimizing downside risk if future performance expectations are overly optimistic [4]. Business Performance - Block is experiencing growth and profitability, with the Square segment showing a 9% year-over-year gross profit growth in Q3, while Cash App's gross profit rose by 24% during the same period [5]. - The company's operating income has been increasing significantly [5]. Bitcoin Focus - Block's Bitcoin initiatives are often overlooked, but they present underappreciated upside potential [6]. - CEO Jack Dorsey has been a proponent of Bitcoin since 2021, believing it could serve as a native currency for the internet due to its digital, decentralized, and scarce nature [7]. - Block's Bitcoin projects include a self-custody wallet called Bitkey, cryptocurrency mining equipment under the Proto brand, Bitcoin trading for Cash App users, and the ability for Square sellers to accept Bitcoin payments [8].