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StoneCo Ltd. (STNE) Stock Sinks As Market Gains: What You Should Know

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The latest trading session saw StoneCo Ltd. (STNE - Free Report) ending at $10.07, denoting a -0.3% adjustment from its last day's close. This change lagged the S&P 500's 0.24% gain on the day. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, added 0.08%.

The company's stock has climbed by 19.67% in the past month, exceeding the Computer and Technology sector's gain of 1.76% and the S&P 500's gain of 2.37%.

Investors will be eagerly watching for the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 18, 2025. The company is forecasted to report an EPS of $0.32, showcasing a 11.11% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $581.37 million, showing a 11.36% drop compared to the year-ago quarter.

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

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. StoneCo Ltd. is currently sporting a Zacks Rank of #5 (Strong Sell).

In terms of valuation, StoneCo Ltd. is currently trading at a Forward P/E ratio of 8.76. This signifies a discount in comparison to the average Forward P/E of 29.86 for its industry.

It is also worth noting that STNE currently has a PEG ratio of 0.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 2.14 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 33% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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