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StoneCo Ltd. (STNE) Advances But Underperforms Market: Key Facts

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StoneCo Ltd. (STNE - Free Report) ended the recent trading session at $14.06, demonstrating a +1.74% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 2.51% for the day. Elsewhere, the Dow saw an upswing of 2.85%, while the tech-heavy Nasdaq appreciated by 2.8%.

The company's shares have seen a decrease of 1.92% over the last month, not keeping up with the Computer and Technology sector's loss of 0.84% and the S&P 500's loss of 1.66%.

The investment community will be closely monitoring the performance of StoneCo Ltd. in its forthcoming earnings report. The company is scheduled to release its earnings on May 14, 2026. In that report, analysts expect StoneCo Ltd. to post earnings of $0.44 per share. This would mark year-over-year growth of 29.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $690.25 million, up 10.29% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.92 per share and a revenue of $2.72 billion, indicating changes of +18.52% and +3.06%, respectively, from the former 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 such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 8.13% fall in the Zacks Consensus EPS estimate. StoneCo Ltd. presently features a Zacks Rank of #3 (Hold).

Digging into valuation, StoneCo Ltd. currently has a Forward P/E ratio of 7.2. This expresses a discount compared to the average Forward P/E of 19.14 of its industry.

It's also important to note that STNE currently trades at a PEG ratio of 0.31. 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 1.06 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 140, putting it in the bottom 43% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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