The Most Intelligent Growth Stock to Buy With $2,000 Today

Growth stocks can be exciting. However, intelligent investors understand that big winners don't just come from fast growth, but through a combination of growth at a cheap price.

Many investors forget this value part of the equation in a bull market. They should remind themselves of its importance because several growth stocks right now are still expensive despite going through some volatile swings so far in 2025.

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Not Remitly Global (NASDAQ: RELY). The upstart remittance provider keeps taking market share and looks cheap at a market cap of just $4.1 billion. Here's why Remitly is the most intelligent growth stock you can buy for $2,000 today, which will get you 100 shares of this fast-growing stock at its current price of $20.

The growth runway in remittance payments

The remittance market (companies that act as intermediaries in facilitating international money transfers) has gotten a shake-up as digital smartphone-first disrupters reach scale in countries around the globe. Remitly has led the way, now having 7.8 million active customers as of the fourth quarter of 2024, growing 32% year over year.

It is stealing customers from Western Union (NYSE: WU) due to its lower fees and ease of use compared to legacy systems. With smart marketing campaigns to key immigrant groups in the United States, such as Indians and Mexicans, Remitly has been able to grow quickly in the last decade.

Growth should remain strong for the rest of the decade, too. The company has around 3% market share of remittances, processing $15.4 billion in volume just in the fourth quarter of last year.

Its positioning versus Western Union will not change anytime soon, meaning that it has a path to get to 6%, 10%, and eventually a higher share of the remittance market over the next 10 years. Growing volumes sent through the platform directly correlate with revenue growth, although fees as a percentage of volume have declined as the business has scaled up.

Remittances are a growing market, giving Remitly a double tailwind of market-share gains and sector growth that has propelled revenue up 130% cumulatively in the last three years. Western Union's revenue is down 15% over the same time period.

Improving profitability at scale

Historically, the company has not generated much in profits. Its fantastic unit economics are masked by heavy spending on technology rollouts and marketing.

Take its $1.26 billion in 2024 revenue and subtract the transaction and customer support expenses, and the gross margin approaches 60%, even though it posted a slight operating loss last year.

Over $300 million spent on marketing and close to $300 million spent on technology and development expenses keep Remitly's profits low, but it should see operating leverage once it reaches scale. The company is already seeing progress on this front, with Remitly's operating loss approaching breakeven in the fourth quarter last year.

Within the next five years, I expect Remitly's 60% gross margins -- which have expanded over time, by the way -- to lead to bottom-line profit margins approaching 20%. The company will always have overhead, marketing, and development expenses, but these unit economics should create fat profit figures once the business reaches global scale.

Data by YCharts; TTM = trailing 12 months.

Why Remitly is an intelligent stock to buy right now

Remitly stock is attractive right now because investors are underrating the true profit potential of this business at its current market cap of $4.1 billion.

Assuming it can keep up its revenue growth rate, the company should clear well over $3 billion in annual sales five years from now. A 20% profit margin on $3 billion in revenue means $600 million in annual earnings for Remitly, with plenty of growth likely still left in the tank.

That would rapidly bring the price-to-earnings ratio (P/E) down below 10, which indicates that the stock is cheap for those who plan to buy today and hold on for many years. Take a swing at Remitly stock right now with that $2,000 in available investment funds. It is a fantastic growth business trading at a reasonable price compared to other high-flyer stocks today.

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Brett Schafer has positions in Remitly Global. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.