Get in on the ground floor: An emerging giant in commodities and forex that's off Wall Street's radar

StoneX Group (SNEX) is highlighted as an underappreciated investment opportunity, characterized by robust financial performance including 31% year-over-year revenue growth and 16% earnings growth. The global financial services network, active in commodities, FX, and derivatives, trades at a low price-to-sales ratio of 0.04 and a P/E of 16, suggesting undervaluation given its $130 billion revenue and $5 billion market cap. Despite noted risks such as margin erosion and acquisition integration, its strategic positioning in high-growth markets and limited analyst coverage indicate significant upside potential for institutional investors.

Analysis

(Jeffrey Hirsch, investor and editor of the Stock Trader’s Almanac , is profiling some “Ground Floor Stocks” for CNBC PRO.) Here’s a Ground Floor pick that Wall Street has yet to fully embrace: StoneX Group (SNEX) . My ground floor criteria require accelerating revenue and earnings (both sequentially and year-over-year), reasonable valuation relative to the market, and solid technical action. I only want reasonably priced stocks growing sales and earnings while flying somewhat under the radar with only a limited number on Wall Street paying close attention to them StoneX is a full-stack global financial services network operating at the intersection of commodities, FX, derivatives, payments and advisory. It serves a diverse client base: producers and end-users of physical commodities; institutional and hedge fund clients; retail and self-directed traders; and businesses requiring global payments. Its business is structured across multiple verticals (commercial/commodity, institutional/execution, retail/FX & metals, and payments), giving it optionality to capture upside during commodity and FX booms. They handle everything under the sun when it comes to trading services, physical delivery and risk management forex, future and commodities. Among the many platforms and services, they own is Forex.com. StoneX’s full range of financial services has them well-positioned in the red hot commodity and forex markets. StoneX is also accelerating via acquisitions. In 2025 it acquired R.J. O’Brien & Associates, creating one of the largest non-bank futures brokers/clearing firms in the U.S., opening the door to scale and cross-selling in derivatives. SNEX YTD mountain StoneX, YTD Revenue growth of 31% and earnings growth of 16% year-over-year from 2023 to 2024 was what initially caught our attention. With $130 billion in revenue and a market cap of just over $5 billion you’ve got to love the super low price-to-sales ratio of 0.04. The 16 P/E is also quite reasonable. Analyst coverage is minimal with only two currently following the stock, giving SNEX the potential for multiple upgrades as it continues to deliver. If SNEX growth can sustain a double-digit trajectory a P/E rating of 20 would not be surprising. That said, investors should watch for margin erosion in competitive verticals, execution risk around acquisitions, debt interest pressure, and regulatory challenges in global markets. But at its current valuation, the upside seems to more than compensate for those risks. In short: StoneX is a rare confluence — enormous scale in high-growth verticals, multi-asset optionality, underappreciated by The Street, and sitting at a valuation that amplifies future earnings. That’s the kind of Ground Floor stock that can compound steeply over time. Full Disclosure: Jeff Hirsch has a position in SNEX. StoneX Group (SNEX) is presented as an underappreciated "Ground Floor Stock" by a professional investor, exhibiting strong financial momentum. The company reported robust year-over-year growth from 2023 to 2024, with revenue accelerating by 31% and earnings increasing by 16%. This performance highlights its ability to capitalize on market conditions within its diverse financial services network. SNEX operates as a full-stack global financial services network, spanning commodities, FX, derivatives, payments, and advisory, serving a broad client base including institutional and retail traders. Its strategic positioning in "red hot" commodity and forex markets, combined with opportunistic acquisitions like the 2025 R.J. O’Brien & Associates deal, provides optionality and scale, facilitating cross-selling in derivatives. Despite its significant operational scale and $130 billion in revenue, SNEX maintains a modest market capitalization of just over $5 billion, translating to an attractive price-to-sales ratio of 0.04 and a P/E of 16. Minimal analyst coverage (only two) suggests the company is currently underappreciated, offering potential for multiple upgrades if its double-digit growth trajectory continues towards a P/E of 20. While the current valuation appears to compensate for identified risks such as margin erosion, acquisition execution challenges, debt interest pressure, and regulatory complexities, these factors warrant careful monitoring. The confluence of enormous scale, high-growth vertical exposure, multi-asset optionality, and current undervaluation positions SNEX as a potentially compelling investment for long-term compound growth.

Key Decisions for Investors

• Evaluate SNEX for potential long-term growth, given its robust revenue and earnings acceleration, coupled with an attractive P/S of 0.04 and P/E of 16.
• Monitor execution risks, such as acquisition integration and potential margin erosion in competitive verticals, along with debt and regulatory pressures, as these represent key areas of uncertainty.
• Consider the potential impact of increased analyst coverage and subsequent upgrades, which could serve as a significant catalyst for multiple expansion from its currently underappreciated valuation.