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Here's Why StoneCo Ltd. (STNE) Fell More Than Broader Market

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StoneCo Ltd. (STNE - Free Report) ended the recent trading session at $14.87, demonstrating a -1.98% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.4% for the day. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, added 0.18%.

Prior to today's trading, shares of the company had gained 0.53% lagged the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 4.97%.

The upcoming earnings release of StoneCo Ltd. will be of great interest to investors. The company's earnings report is expected on August 7, 2025. In that report, analysts expect StoneCo Ltd. to post earnings of $0.34 per share. This would mark year-over-year growth of 13.33%. Our most recent consensus estimate is calling for quarterly revenue of $671.49 million, up 9.16% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $1.44 per share and a revenue of $2.73 billion, demonstrating changes of +6.67% and +10.94%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for StoneCo Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.89% higher. At present, StoneCo Ltd. boasts a Zacks Rank of #3 (Hold).

With respect to valuation, StoneCo Ltd. is currently being traded at a Forward P/E ratio of 10.53. This denotes a discount relative to the industry average Forward P/E of 28.28.

Meanwhile, STNE's PEG ratio is currently 0.42. 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 average PEG ratio for the Internet - Software industry stood at 2.18 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 64, this industry ranks in the top 26% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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