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StoneCo Ltd. (STNE) Stock Moves -1.51%: What You Should Know

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In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $11.10, marking a -1.51% move from the previous day. The stock's change was more than the S&P 500's daily loss of 1.86%. Elsewhere, the Dow saw a downswing of 0.9%, while the tech-heavy Nasdaq depreciated by 2.76%.

Shares of the company have appreciated by 1.71% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.02% and outperforming the S&P 500's gain of 1.01%.

The investment community will be paying close attention to the earnings performance of StoneCo Ltd. in its upcoming release. The company is slated to reveal its earnings on November 12, 2024. The company's earnings per share (EPS) are projected to be $0.32, reflecting a 18.52% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $594.78 million, down 7.56% from the year-ago period.

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.

Any recent changes to analyst estimates for StoneCo Ltd. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, StoneCo Ltd. boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, StoneCo Ltd. is currently exchanging hands at a Forward P/E ratio of 9.29. Its industry sports an average Forward P/E of 32.38, so one might conclude that StoneCo Ltd. is trading at a discount comparatively.

We can additionally observe that STNE currently boasts a PEG ratio of 0.4. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.21.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 29% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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