StoneCo Ltd. (STNE) closed the most recent trading day at $10.99, moving -0.82% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 3.46%. Meanwhile, the Dow experienced a drop of 2.5%, and the technology-dominated Nasdaq saw a decrease of 4.31%.
Coming into today, shares of the company had gained 21.36% in the past month. In that same time, the Computer and Technology sector lost 7.24%, while the S&P 500 lost 5.27%.
The investment community will be closely monitoring the performance of StoneCo Ltd. in its forthcoming earnings report. The company is scheduled to release its earnings on May 8, 2025. The company is predicted to post an EPS of $0.29, indicating constancy compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $572.46 million, indicating an 8.13% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.26 per share and a revenue of $2.56 billion, demonstrating changes of -6.67% and +4.13%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for StoneCo Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. The Zacks Consensus EPS estimate has moved 9.54% higher within the past month. Right now, StoneCo Ltd. possesses a Zacks Rank of #1 (Strong Buy).
Investors should also note StoneCo Ltd.'s current valuation metrics, including its Forward P/E ratio of 8.26. This signifies a discount in comparison to the average Forward P/E of 23.21 for its industry.
It is also worth noting that STNE currently has a PEG ratio of 0.31. 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 1.75 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 31% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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