We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why StoneCo Ltd. (STNE) Fell More Than Broader Market
Read MoreHide Full Article
In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $13.35, marking a -3.54% move from the previous day. The stock's change was less than the S&P 500's daily loss of 1.51%. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 2.01%.
Shares of the company have depreciated by 18.54% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.84%, and the S&P 500's loss of 3.63%.
The upcoming earnings release of StoneCo Ltd. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.48, reflecting a 41.18% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $694.49 million, up 10.96% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.95 per share and a revenue of $2.72 billion, signifying shifts of +20.37% and +2.97%, respectively, from the last year.
Investors should also take note of any recent adjustments 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 shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 7% rise in the Zacks Consensus EPS estimate. StoneCo Ltd. is currently a Zacks Rank #4 (Sell).
Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 7.09. This signifies a discount in comparison to the average Forward P/E of 19.06 for its industry.
We can also see that STNE currently has a PEG ratio of 0.25. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 1.06 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 40% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why StoneCo Ltd. (STNE) Fell More Than Broader Market
In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $13.35, marking a -3.54% move from the previous day. The stock's change was less than the S&P 500's daily loss of 1.51%. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 2.01%.
Shares of the company have depreciated by 18.54% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.84%, and the S&P 500's loss of 3.63%.
The upcoming earnings release of StoneCo Ltd. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.48, reflecting a 41.18% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $694.49 million, up 10.96% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.95 per share and a revenue of $2.72 billion, signifying shifts of +20.37% and +2.97%, respectively, from the last year.
Investors should also take note of any recent adjustments 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 shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 7% rise in the Zacks Consensus EPS estimate. StoneCo Ltd. is currently a Zacks Rank #4 (Sell).
Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 7.09. This signifies a discount in comparison to the average Forward P/E of 19.06 for its industry.
We can also see that STNE currently has a PEG ratio of 0.25. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 1.06 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 40% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.