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StoneCo Ltd. (STNE) Stock Sinks As Market Gains: What You Should Know
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StoneCo Ltd. (STNE - Free Report) closed the most recent trading day at $12.33, moving -0.8% from the previous trading session. This change lagged the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 4.62%.
Prior to today's trading, shares of the company had lost 8.06% over the past month. This has lagged the Computer and Technology sector's gain of 2.78% and the S&P 500's gain of 2.65% in that time.
Wall Street will be looking for positivity from StoneCo Ltd. as it approaches its next earnings report date. This is expected to be August 16, 2023. The company is expected to report EPS of $0.17, up 240% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $402.15 million, down 14.38% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.71 per share and revenue of $1.94 billion, which would represent changes of +115.15% and +4.41%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for StoneCo Ltd.Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 2.37% higher. StoneCo Ltd. is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, StoneCo Ltd. is holding a Forward P/E ratio of 17.51. This valuation marks a discount compared to its industry's average Forward P/E of 43.84.
It is also worth noting that STNE currently has a PEG ratio of 0.32. 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. The Internet - Software industry currently had an average PEG ratio of 1.86 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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StoneCo Ltd. (STNE) Stock Sinks As Market Gains: What You Should Know
StoneCo Ltd. (STNE - Free Report) closed the most recent trading day at $12.33, moving -0.8% from the previous trading session. This change lagged the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 4.62%.
Prior to today's trading, shares of the company had lost 8.06% over the past month. This has lagged the Computer and Technology sector's gain of 2.78% and the S&P 500's gain of 2.65% in that time.
Wall Street will be looking for positivity from StoneCo Ltd. as it approaches its next earnings report date. This is expected to be August 16, 2023. The company is expected to report EPS of $0.17, up 240% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $402.15 million, down 14.38% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.71 per share and revenue of $1.94 billion, which would represent changes of +115.15% and +4.41%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for StoneCo Ltd.Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 2.37% higher. StoneCo Ltd. is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, StoneCo Ltd. is holding a Forward P/E ratio of 17.51. This valuation marks a discount compared to its industry's average Forward P/E of 43.84.
It is also worth noting that STNE currently has a PEG ratio of 0.32. 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. The Internet - Software industry currently had an average PEG ratio of 1.86 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.