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

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StoneCo Ltd. (STNE - Free Report) closed the most recent trading day at $16.59, moving +1.9% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. On the other hand, the Dow registered a loss of 0.83%, and the technology-centric Nasdaq increased by 0.91%.

The company's stock has climbed by 9.7% in the past month, exceeding the Computer and Technology sector's gain of 0.49% and the S&P 500's gain of 0.38%.

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 March 2, 2026. In that report, analysts expect StoneCo Ltd. to post earnings of $0.5 per share. This would mark year-over-year growth of 28.21%. Alongside, our most recent consensus estimate is anticipating revenue of $749.14 million, indicating a 21.29% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.71 per share and revenue of $2.77 billion, indicating changes of +26.67% and 0%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for StoneCo Ltd. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.85% higher. StoneCo Ltd. currently has a Zacks Rank of #4 (Sell).

In the context of valuation, StoneCo Ltd. is at present trading with a Forward P/E ratio of 8.22. This signifies a discount in comparison to the average Forward P/E of 24.04 for its industry.

We can also see that STNE currently has a PEG ratio of 0.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 1.42 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons 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.

To follow STNE in the coming trading sessions, be sure to utilize Zacks.com.


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