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StoneCo Ltd. (STNE) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $18.57, marking a -1.07% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.5%. On the other hand, the Dow registered a loss of 0.38%, and the technology-centric Nasdaq decreased by 0.5%.
Prior to today's trading, shares of the company had gained 17.9% outpaced the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 2.74%.
Analysts and investors alike will be keeping a close eye on the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.41, reflecting a 17.14% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $663.59 million, reflecting a 9.6% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.62 per share and a revenue of $2.7 billion, signifying shifts of +20% and +9.78%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for StoneCo Ltd. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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. Within the past 30 days, our consensus EPS projection has moved 8.5% higher. As of now, StoneCo Ltd. holds a Zacks Rank of #2 (Buy).
Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 11.61. This denotes a discount relative to the industry average Forward P/E of 31.31.
Also, we should mention that STNE has a PEG ratio of 0.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.28.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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StoneCo Ltd. (STNE) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $18.57, marking a -1.07% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.5%. On the other hand, the Dow registered a loss of 0.38%, and the technology-centric Nasdaq decreased by 0.5%.
Prior to today's trading, shares of the company had gained 17.9% outpaced the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 2.74%.
Analysts and investors alike will be keeping a close eye on the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.41, reflecting a 17.14% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $663.59 million, reflecting a 9.6% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.62 per share and a revenue of $2.7 billion, signifying shifts of +20% and +9.78%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for StoneCo Ltd. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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. Within the past 30 days, our consensus EPS projection has moved 8.5% higher. As of now, StoneCo Ltd. holds a Zacks Rank of #2 (Buy).
Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 11.61. This denotes a discount relative to the industry average Forward P/E of 31.31.
Also, we should mention that STNE has a PEG ratio of 0.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.28.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.