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StoneCo Ltd. (STNE) Stock Sinks As Market Gains: What You Should Know

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In the latest close session, StoneCo Ltd. (STNE - Free Report) was down 1.15% at $14.61. The stock trailed the S&P 500, which registered a daily gain of 1.18%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq gained 1.96%.

Prior to today's trading, shares of the company had gained 5.5% outpaced the Computer and Technology sector's gain of 5.37% and the S&P 500's gain of 3.93%.

Investors will be eagerly watching for the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled 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%. Alongside, our most recent consensus estimate is anticipating revenue of $690.25 million, indicating a 10.29% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.92 per share and a revenue of $2.72 billion, representing changes of +18.52% and +3.06%, respectively, from the prior year.

Any recent changes to analyst estimates for StoneCo Ltd. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 8.13% downward. At present, StoneCo Ltd. boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, StoneCo Ltd. is holding a Forward P/E ratio of 7.7. This represents a discount compared to its industry average Forward P/E of 18.17.

It is also worth noting that STNE currently has a PEG ratio of 0.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 1.01 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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.

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