StoneCo Ltd. (STNE) closed the most recent trading day at $14.92, moving +2.61% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.16%. Meanwhile, the Dow experienced a rise of 1.21%, and the technology-dominated Nasdaq saw an increase of 1.18%.
Shares of the company witnessed a loss of 1.29% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 1.07%, and the S&P 500's loss of 0.42%.
The investment community will be paying close attention to the earnings performance of StoneCo Ltd. in its upcoming release. On that day, StoneCo Ltd. is projected to report earnings of $0.5 per share, which would represent year-over-year growth of 28.21%. Alongside, our most recent consensus estimate is anticipating revenue of $749.14 million, indicating a 21.29% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.71 per share and revenue of $2.77 billion. These totals would mark changes of +26.67% and 0%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.85% higher. Currently, StoneCo Ltd. is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 7.34. This represents a discount compared to its industry average Forward P/E of 22.98.
We can additionally observe that STNE currently boasts a PEG ratio of 0.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.39.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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