The most recent trading session ended with StoneCo Ltd. (STNE) standing at $13.77, reflecting a -0.86% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 1.47% for the day. Meanwhile, the Dow gained 1.39%, and the Nasdaq, a tech-heavy index, added 1.51%.
Coming into today, shares of the company had gained 21.95% in the past month. In that same time, the Computer and Technology sector gained 2.42%, while the S&P 500 lost 0.47%.
Analysts and investors alike will be keeping a close eye on the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company's earnings report is set to go public on May 8, 2025. The company is forecasted to report an EPS of $0.32, showcasing a 10.34% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $614.82 million, indicating a 1.33% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.38 per share and a revenue of $2.7 billion, representing changes of +2.22% and +9.82%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for StoneCo Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 16.25% higher. StoneCo Ltd. currently has a Zacks Rank of #1 (Strong Buy).
With respect to valuation, StoneCo Ltd. is currently being traded at a Forward P/E ratio of 10.04. This signifies a discount in comparison to the average Forward P/E of 26.11 for its industry.
One should further note that STNE currently holds a PEG ratio of 0.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 43% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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