In the latest trading session, StoneCo Ltd. (STNE – Free Report) closed at $10.43, marking a -1.79% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.57% for the day. Elsewhere, the Dow lost 0.84%, while the tech-heavy Nasdaq lost 2.15%.
The the stock of company has risen by 14.69% in the past month, leading the Computer and Technology sector’s loss of 16.01% and the S&P 500’s loss of 12.16%.
Analysts and investors alike will be keeping a close eye on the performance of StoneCo Ltd. in its upcoming earnings disclosure. In that report, analysts expect StoneCo Ltd. to post earnings of $0.27 per share. This would mark a year-over-year decline of 6.9%. Meanwhile, our latest consensus estimate is calling for revenue of $572.46 million, down 8.13% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.19 per share and revenue of $2.56 billion, which would represent changes of -11.85% and +4.13%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for StoneCo Ltd. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 3.18% increase. StoneCo Ltd. is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, StoneCo Ltd. is currently trading at a Forward P/E ratio of 8.92. This signifies a discount in comparison to the average Forward P/E of 23.49 for its industry.
We can additionally observe that STNE currently boasts a PEG ratio of 0.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Internet – Software was holding an average PEG ratio of 1.8 at yesterday’s closing price.
The Internet – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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