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StoneCo Ltd. (STNE) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest close session, StoneCo Ltd. (STNE - Free Report) was up +2.01% at $19.07. The stock exceeded the S&P 500, which registered a gain of 0.26% for the day. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.61%.

Prior to today's trading, shares of the company had gained 2.69% lagged the Computer and Technology sector's gain of 6.42% and outpaced the S&P 500's gain of 2.08%.

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 report is set to go public on November 6, 2025. In that report, analysts expect StoneCo Ltd. to post earnings of $0.43 per share. This would mark year-over-year growth of 22.86%. Meanwhile, the latest consensus estimate predicts the revenue to be $700.74 million, indicating a 15.73% increase compared to the same quarter of the previous year.

STNE's full-year Zacks Consensus Estimates are calling for earnings of $1.68 per share and revenue of $2.81 billion. These results would represent year-over-year changes of +24.44% and +14.25%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for StoneCo Ltd. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 3.92% higher. StoneCo Ltd. is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note StoneCo Ltd.'s current valuation metrics, including its Forward P/E ratio of 11.13. This represents a discount compared to its industry average Forward P/E of 28.95.

We can additionally observe that STNE currently boasts a PEG ratio of 0.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.08 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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