In the latest trading session, StoneCo Ltd. (STNE) closed at $16.66, marking a -6.03% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.04%. Meanwhile, the Dow experienced a drop of 1.66%, and the technology-dominated Nasdaq saw a decrease of 1.13%.
The company's stock has climbed by 10.88% in the past month, exceeding the Computer and Technology sector's gain of 0.34% and the S&P 500's gain of 1.75%.
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 March 2, 2026. On that day, StoneCo Ltd. is projected to report earnings of $0.48 per share, which would represent year-over-year growth of 23.08%. In the meantime, our current consensus estimate forecasts the revenue to be $717.93 million, indicating a 16.24% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.72 per share and a revenue of $2.68 billion, representing changes of +27.41% and +8.7%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.35% lower within the past month. StoneCo Ltd. is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, StoneCo Ltd. is presently being traded at a Forward P/E ratio of 9.08. For comparison, its industry has an average Forward P/E of 18.99, which means StoneCo Ltd. is trading at a discount to the group.
It's also important to note that STNE currently trades at a PEG ratio of 0.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.11.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 132, finds itself in the bottom 47% echelons of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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