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StoneCo Ltd. (STNE) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $11.99, marking a -1.88% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.12%. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.2%.

Shares of the company have depreciated by 9.21% over the course of the past month, underperforming the Computer and Technology sector's gain of 16.05%, and the S&P 500's gain of 9.3%.

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 May 14, 2026. The company is forecasted to report an EPS of $0.42, showcasing a 23.53% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $708.45 million, indicating a 13.2% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.99 per share and revenue of $2.82 billion. These totals would mark changes of +22.84% and +6.67%, respectively, from last year.

Investors should also pay attention to any latest changes in 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 3.86% lower. At present, StoneCo Ltd. boasts a Zacks Rank of #3 (Hold).

In terms of valuation, StoneCo Ltd. is presently being traded at a Forward P/E ratio of 6.14. This signifies a discount in comparison to the average Forward P/E of 18.77 for its industry.

Meanwhile, STNE's PEG ratio is currently 0.26. 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 average PEG ratio for the Internet - Software industry stood at 1.09 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 36% of over 250 industries.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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