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

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StoneCo Ltd. (STNE - Free Report) closed the most recent trading day at $17.70, moving -1.01% from the previous trading session. This move lagged the S&P 500's daily loss of 0.38%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 0.67%.

Heading into today, shares of the company had gained 3.59% over the past month, lagging the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 4.06%.

Market participants will be closely following the financial results of StoneCo Ltd. in its upcoming release. The company plans to announce its earnings on November 6, 2025. In that report, analysts expect StoneCo Ltd. to post earnings of $0.41 per share. This would mark year-over-year growth of 17.14%. Meanwhile, our latest consensus estimate is calling for revenue of $663.59 million, up 9.6% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.62 per share and a revenue of $2.7 billion, representing changes of +20% and +9.78%, respectively, from the prior year.

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, 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 8.5% upward. StoneCo Ltd. is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, StoneCo Ltd. is presently being traded at a Forward P/E ratio of 11.06. This valuation marks a discount compared to its industry average Forward P/E of 30.

It's also important to note that STNE currently trades at a PEG ratio of 0.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 2.35 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 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.

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


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