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StoneCo Ltd. (STNE) Ascends But Remains Behind Market: Some Facts to Note

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The most recent trading session ended with StoneCo Ltd. (STNE - Free Report) standing at $16.64, reflecting a +0.67% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.74% for the day. Elsewhere, the Dow saw a downswing of 0.01%, while the tech-heavy Nasdaq appreciated by 1.68%.

The the stock of company has fallen by 4.34% in the past month, lagging the Computer and Technology sector's gain of 0.95% and the S&P 500's gain of 0.8%.

The upcoming earnings release of StoneCo Ltd. will be of great interest to investors. The company is forecasted to report an EPS of $0.30, showcasing a 114.29% upward movement from the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.30 per share and a revenue of $2.3 billion, representing changes of +34.02% and -4.75%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for StoneCo Ltd. Such recent modifications usually signify the changing landscape of 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 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.92% higher. As of now, StoneCo Ltd. holds a Zacks Rank of #1 (Strong Buy).

Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 12.76. For comparison, its industry has an average Forward P/E of 29.42, which means StoneCo Ltd. is trading at a discount to the group.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 35, this industry ranks in the top 14% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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