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Why StoneCo Ltd. (STNE) Dipped More Than Broader Market Today

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In the latest close session, StoneCo Ltd. (STNE - Free Report) was down 1.33% at $12.95. The stock's performance was behind the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.39%, and the tech-heavy Nasdaq gained 0.15%.

The company's shares have seen a decrease of 18.68% over the last month, not keeping up with the Computer and Technology sector's gain of 4.69% and the S&P 500's gain of 3.39%.

Market participants will be closely following the financial results of StoneCo Ltd. in its upcoming release. The company plans to announce its earnings on August 7, 2025. The company is expected to report EPS of $0.36, up 20% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $653.09 million, reflecting a 6.17% rise from the equivalent quarter last year.

STNE's full-year Zacks Consensus Estimates are calling for earnings of $1.49 per share and revenue of $2.65 billion. These results would represent year-over-year changes of +10.37% and +7.56%, respectively.

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 a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.47% increase. StoneCo Ltd. is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note StoneCo Ltd.'s current valuation metrics, including its Forward P/E ratio of 8.81. This represents a discount compared to its industry average Forward P/E of 28.27.

We can additionally observe that STNE currently boasts a PEG ratio of 0.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.15.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 72, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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