StoneCo Ltd. (STNE – Free Report) closed the latest trading day at $11.32, indicating a +1.98% change from the previous session’s end. The stock’s performance was ahead of the S&P 500’s daily gain of 1.77%. Elsewhere, the Dow gained 1.42%, while the tech-heavy Nasdaq added 2.28%.
Prior to today’s trading, shares of the company had gained 12.01% over the past month. This has outpaced the Computer and Technology sector’s loss of 9.47% and the S&P 500’s loss of 5.73% in that time.
The investment community will be closely monitoring the performance of StoneCo Ltd. in its forthcoming earnings report. In that report, analysts expect StoneCo Ltd. to post earnings of $0.26 per share. This would mark a year-over-year decline of 10.34%. Meanwhile, the latest consensus estimate predicts the revenue to be $572.46 million, indicating an 8.13% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.15 per share and revenue of $2.48 billion, indicating changes of -14.81% and +0.71%, respectively, compared to the previous year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for StoneCo Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 an unchanged state. Currently, StoneCo Ltd. is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, StoneCo Ltd. is at present trading with a Forward P/E ratio of 9.62. This represents a discount compared to its industry’s average Forward P/E of 27.41.
We can additionally observe that STNE currently boasts a PEG ratio of 0.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Internet – Software stocks are, on average, holding a PEG ratio of 2.06 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 32% echelons 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.
To follow STNE in the coming trading sessions, be sure to utilize Zacks.com.
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