In the latest close session, StoneCo Ltd. (STNE) was up +2.05% at $19.39. The stock outperformed the S&P 500, which registered a daily gain of 1.23%. Elsewhere, the Dow saw an upswing of 0.72%, while the tech-heavy Nasdaq appreciated by 1.86%.
The company's stock has climbed by 1.5% in the past month, falling short of the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.45%.
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 November 6, 2025. In that report, analysts expect StoneCo Ltd. to post earnings of $0.43 per share. This would mark year-over-year growth of 22.86%. In the meantime, our current consensus estimate forecasts the revenue to be $700.74 million, indicating a 15.73% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.68 per share and a revenue of $2.81 billion, signifying shifts of +24.44% and +14.25%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for StoneCo Ltd. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 3.92% rise in the Zacks Consensus EPS estimate. StoneCo Ltd. presently features a Zacks Rank of #1 (Strong Buy).
In the context of valuation, StoneCo Ltd. is at present trading with a Forward P/E ratio of 11.31. This valuation marks a discount compared to its industry average Forward P/E of 30.18.
One should further note that STNE currently holds a PEG ratio of 0.37. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.14.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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StoneCo Ltd. (STNE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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