StoneCo Ltd. (STNE) closed the latest trading day at $13.02, indicating a -0.76% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 1.67%. Meanwhile, the Dow experienced a rise of 1.07%, and the technology-dominated Nasdaq saw an increase of 2.5%.
Shares of the company have appreciated by 14.59% over the course of the past month, outperforming the Computer and Technology sector's loss of 9.93% and the S&P 500's loss of 6.57%.
Market participants will be closely following the financial results of StoneCo Ltd. in its upcoming release. The company plans to announce its earnings on May 8, 2025. The company is expected to report EPS of $0.29, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $572.46 million, down 8.13% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.26 per share and a revenue of $2.56 billion, indicating changes of -6.67% and +4.13%, respectively, from the former year.
Any recent changes to analyst estimates for StoneCo Ltd. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.16% increase. Right now, StoneCo Ltd. possesses a Zacks Rank of #1 (Strong Buy).
Digging into valuation, StoneCo Ltd. currently has a Forward P/E ratio of 10.39. This signifies a discount in comparison to the average Forward P/E of 24.08 for its industry.
It's also important to note that STNE currently trades at a PEG ratio of 0.4. 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 industry had an average PEG ratio of 1.96 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 79, which puts 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.
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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