In the latest close session, StoneCo Ltd. (STNE) was up +1.15% at $19.40. The stock outpaced the S&P 500's daily gain of 0.49%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.72%.
Prior to today's trading, shares of the company had gained 29.33% outpaced the Computer and Technology sector's gain of 6.81% and the S&P 500's gain of 2.99%.
Investors will be eagerly watching for the performance of StoneCo Ltd. in its upcoming earnings disclosure. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.54 per share and a revenue of $2.65 billion, indicating changes of +14.07% and +7.56%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for StoneCo Ltd. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 3.36% rise in the Zacks Consensus EPS estimate. StoneCo Ltd. is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, StoneCo Ltd. is presently being traded at a Forward P/E ratio of 12.45. This signifies a discount in comparison to the average Forward P/E of 32.6 for its industry.
One should further note that STNE currently holds a PEG ratio of 0.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.33 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 64, this industry ranks in the top 26% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow STNE in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
StoneCo Ltd. (STNE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
