Many investors are focused right now on the potential positive impact on growth stocks of multiple impending interest-rate cuts by the U.S. Federal Reserve later this year. But there's one promising business in a different country that I think deserves even more attention.

If you have $1,000 you want to put to work in the stock market right now, I think Brazilian fintech stock StoneCo (STNE 5.01%) is worth considering. In fact, though StoneCo shares have risen an impressive 74% over the past year as of this writing, I think it could further cement its status as the ultimate growth stock when all is said and done in 2024.

StoneCo is already enjoying the impact of lower rates (in Brazil)

After raising the U.S. federal funds rate at an unprecedented pace starting in March 2022 in an effort to curb inflation, the U.S. Federal Reserve indicated at least three rate cuts are on the way in 2024. That's widely considered great news for stocks in part as it makes them more attractive to fixed-income alternatives. But it's especially good for yet-to-be-profitable growth stocks that tend to be particularly sensitive to higher rates.

Meanwhile, the Brazilian Central Bank (BCB) already began a rate-cutting cycle with 50 basis-point (0.5 percentage-point) reductions in both August and September 2023, marking its first rate cuts in three years. This pattern of continued rate cuts is widely expected to extend through at least the first half of 2024 and might well last for the next couple of years barring any unanticipated upticks in inflation that might convince the BCB to abandon its current approach.

So why is this great for StoneCo? Recall in 2021 StoneCo was forced to grapple with the impact of rapidly rising rates in Brazil eating into its profit margins; Brazil's target federal funds rate skyrocketed from 2% in March 2021 to 13.8% by August 2022. For perspective, even after our historic pace of rate increases, the United States' federal funds rate is currently set at a range of 5.25% to 5.5%.

But StoneCo stubbornly refused to pass on resulting higher costs to its loyal, growing base of micro, small, and medium-sized business (MSMB) clients in keeping with its mission to empower those merchants to scale their businesses seamlessly whether in person or online. Coupled with big losses from its credit product in late 2021 (after technical glitches mired the launch of the BCB's then-new financial registry), that stubbornness led to a steep 80% decline in StoneCo's share price in 2021. But StoneCo also maintained strong rapport with its core MSMB client base, which responded well when it finally began to implement repricing initiatives in late 2021 to curb its losses.

What's next for StoneCo investors?

Today, StoneCo is finally firing on all cylinders once again. The company is now on track to achieve its first full-year profit after two straight years of losses and recently announced a 1-billion Brazilian real (around $204 million) repurchase program. In November, StoneCo also issued medium-to-longer-term guidance for compound annual growth rates (CAGRs) from 2024 to 2027 of 26% for client deposits, 13% in MSMB total payment volumes, 90% for its recently relaunched credit-portfolio product, and 31% for adjusted net income.

What's more, last month StoneCo announced a new $467.5 million revolving credit facility from none other than the United States International Development Finance Corporation (USIDFC), an agency of the U.S. government. StoneCo says it will use the proceeds from the new facility to help its MSMB clients scale through enabling liquidity for installment sales, which represent around 80% of all e-commerce transactions in Brazil.

It seems, then, that StoneCo is primed to accelerate its momentum even further in the coming quarters. I think investors who open or add to their positions before that acceleration becomes evident will be more than happy with their decision.