In the latest trading session, StoneCo Ltd. (STNE) closed at $13.47, marking a -1.46% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.14%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.38%.
Coming into today, shares of the company had lost 5.85% in the past month. In that same time, the Computer and Technology sector gained 7.37%, while the S&P 500 gained 5.35%.
Investors will be eagerly watching for the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 7, 2025. It is anticipated that the company will report an EPS of $0.36, marking a 20% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $653.09 million, up 6.17% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.49 per share and revenue of $2.65 billion, indicating changes of +10.37% and +7.56%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for StoneCo Ltd. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.42% increase. StoneCo Ltd. currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, StoneCo Ltd. is currently exchanging hands at a Forward P/E ratio of 9.17. Its industry sports an average Forward P/E of 29.16, so one might conclude that StoneCo Ltd. is trading at a discount comparatively.
Investors should also note that STNE has a PEG ratio of 0.36 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.2 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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StoneCo Ltd. (STNE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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