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StoneCo Ltd. (STNE) Stock Slides as Market Rises: Facts to Know Before You Trade
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StoneCo Ltd. (STNE - Free Report) ended the recent trading session at $18.19, demonstrating a -3.81% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.34%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%.
Heading into today, shares of the company had gained 16.16% over the past month, outpacing the Computer and Technology sector's gain of 8.07% and the S&P 500's gain of 3.54%.
Market participants will be closely following the financial results of StoneCo Ltd. in its upcoming release. It is anticipated that the company will report an EPS of $0.41, marking a 17.14% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $663.59 million, up 9.6% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.62 per share and revenue of $2.7 billion. These totals would mark changes of +20% and +9.78%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for StoneCo Ltd. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 8.5% increase. StoneCo Ltd. is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 11.7. This valuation marks a discount compared to its industry average Forward P/E of 30.19.
Meanwhile, STNE's PEG ratio is currently 0.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 2.3 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Stock Slides as Market Rises: Facts to Know Before You Trade
StoneCo Ltd. (STNE - Free Report) ended the recent trading session at $18.19, demonstrating a -3.81% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.34%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%.
Heading into today, shares of the company had gained 16.16% over the past month, outpacing the Computer and Technology sector's gain of 8.07% and the S&P 500's gain of 3.54%.
Market participants will be closely following the financial results of StoneCo Ltd. in its upcoming release. It is anticipated that the company will report an EPS of $0.41, marking a 17.14% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $663.59 million, up 9.6% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.62 per share and revenue of $2.7 billion. These totals would mark changes of +20% and +9.78%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for StoneCo Ltd. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 8.5% increase. StoneCo Ltd. is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 11.7. This valuation marks a discount compared to its industry average Forward P/E of 30.19.
Meanwhile, STNE's PEG ratio is currently 0.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 2.3 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.