StoneCo Ltd. (STNE) ended the recent trading session at $17.03, demonstrating a -1.22% change from the preceding day's closing price. This change lagged the S&P 500's 1.56% gain on the day. Elsewhere, the Dow saw an upswing of 1.29%, while the tech-heavy Nasdaq appreciated by 2.21%.
Heading into today, shares of the company had lost 5.74% over the past month, lagging the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 0.41%.
The investment community will be paying close attention to the earnings performance of StoneCo Ltd. in its upcoming release. The company is slated to reveal its earnings on November 6, 2025. The company's upcoming EPS is projected at $0.41, signifying a 17.14% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $663.59 million, indicating a 9.6% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $1.62 per share and a revenue of $2.7 billion, demonstrating changes of +20% and +9.78%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for StoneCo Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.98% higher. At present, StoneCo Ltd. boasts a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, StoneCo Ltd. is currently exchanging hands at a Forward P/E ratio of 10.66. This signifies a discount in comparison to the average Forward P/E of 28.54 for its industry.
Investors should also note that STNE has a PEG ratio of 0.35 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 2.09 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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