StoneCo Ltd. (STNE) ended the recent trading session at $16.75, demonstrating a -1.09% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.84%. On the other hand, the Dow registered a loss of 0.34%, and the technology-centric Nasdaq decreased by 1.43%.
Heading into today, shares of the company had gained 11.64% over the past month, outpacing the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 1.8%.
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 March 2, 2026. The company's upcoming EPS is projected at $0.47, signifying a 20.51% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $729.58 million, reflecting a 18.13% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.65 per share and a revenue of $2.65 billion, representing changes of +22.22% and 0%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for StoneCo Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, there's been a 3.99% fall in the Zacks Consensus EPS estimate. StoneCo Ltd. is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, StoneCo Ltd. currently has a Forward P/E ratio of 8.98. For comparison, its industry has an average Forward P/E of 22.25, which means StoneCo Ltd. is trading at a discount to the group.
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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.24.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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