Just noticed something interesting about Block that most retail investors seem to be sleeping on right now.

Shares are down 77% from their 2021 peak, which sounds brutal on the surface. But here's the thing - that actually puts the valuation at a pretty compelling level. We're talking an EV/EBIT ratio around 15.1, which in today's market environment is genuinely attractive. When you're looking at sleeper stocks worth your attention, valuation is usually the first thing that gets overlooked.

The business itself is still firing on multiple cylinders. Square's gross profit grew 9% year-over-year last quarter, and Cash App - with its 58 million monthly active users - did even better at 24% growth. Operating income has been solid too. So it's not like this is a struggling company. It's just been beaten down by market sentiment swings.

But here's what I find most interesting about this as a potential sleeper stock: the Bitcoin angle that everyone keeps glossing over. Block has quietly been building out some serious Bitcoin infrastructure. They've got Bitkey, their self-custody wallet. Mining equipment under the Proto brand. Cash App users can trade BTC. Square sellers can now accept Bitcoin payments. Jack Dorsey has been openly bullish on Bitcoin for years, positioning it as the internet's native currency.

The reason I'm bringing this up is simple - if Bitcoin starts making a real move, Block's entire positioning changes in the eyes of investors. Right now at $74.63K, we're in interesting territory. If that momentum continues, the market might suddenly wake up to what Block has been building in the crypto space. And when that happens, the valuation probably won't look this attractive anymore.

That's the thesis on this one. Sometimes the best sleeper stocks are just waiting for the market to connect the dots. Worth keeping on your radar if you're thinking longer-term.