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StoneCo Ltd. (STNE) Increases Despite Market Slip: Here's What You Need to Know

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StoneCo Ltd. (STNE - Free Report) closed at $11.12 in the latest trading session, marking a +0.91% move from the prior day. This move outpaced the S&P 500's daily loss of 0.05%. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.18%.

Shares of the company have depreciated by 0.81% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.5% and the S&P 500's gain of 2.76%.

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 November 12, 2024. It is anticipated that the company will report an EPS of $0.32, marking a 18.52% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $594.78 million, down 7.56% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $1.21 per share and a revenue of $2.42 billion, demonstrating changes of +24.74% and +0.24%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for StoneCo Ltd. 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 10.64% upward. StoneCo Ltd. is currently a Zacks Rank #3 (Hold).

Looking at its valuation, StoneCo Ltd. is holding a Forward P/E ratio of 9.08. For comparison, its industry has an average Forward P/E of 32.36, which means StoneCo Ltd. is trading at a discount to the group.

We can also see that STNE currently has a PEG ratio of 0.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 2.19 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 57, positioning it in the top 23% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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