StoneCo Ltd. (STNE) closed the most recent trading day at $16.18, moving +1.13% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.83% for the day. Meanwhile, the Dow experienced a rise of 0.77%, and the technology-dominated Nasdaq saw an increase of 1.02%.
Coming into today, shares of the company had gained 15.69% in the past month. In that same time, the Computer and Technology sector gained 8.25%, while the S&P 500 gained 4.99%.
Analysts and investors alike will be keeping a close eye on the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.34, signifying a 13.33% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $671.49 million, indicating a 9.16% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.44 per share and a revenue of $2.73 billion, indicating changes of +6.67% and +10.94%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, 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 past month, there's been a 1.89% rise in the Zacks Consensus EPS estimate. StoneCo Ltd. is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, StoneCo Ltd. is holding a Forward P/E ratio of 11.11. This valuation marks a discount compared to its industry average Forward P/E of 28.74.
We can additionally observe that STNE currently boasts a PEG ratio of 0.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.22.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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StoneCo Ltd. (STNE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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