StoneCo Ltd. (STNE) closed at $19.02 in the latest trading session, marking a +1.01% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.1%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, lost 0.33%.
Coming into today, shares of the company had gained 26.12% in the past month. In that same time, the Computer and Technology sector gained 5.94%, while the S&P 500 gained 2.57%.
The investment community will be paying close attention to the earnings performance of StoneCo Ltd. in its upcoming release. The company is predicted to post an EPS of $0.39, indicating a 11.43% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $661.83 million, up 9.31% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.54 per share and revenue of $2.65 billion, which would represent changes of +14.07% and +7.56%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for StoneCo Ltd. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.36% increase. StoneCo Ltd. is currently sporting a Zacks Rank of #1 (Strong Buy).
With respect to valuation, StoneCo Ltd. is currently being traded at a Forward P/E ratio of 12.23. This indicates a discount in contrast to its industry's Forward P/E of 31.68.
Meanwhile, STNE's PEG ratio is currently 0.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry had an average PEG ratio of 2.27 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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