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StoneCo Ltd. (STNE) Outperforms Broader Market: What You Need to Know

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In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $11.30, marking a +1.35% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.38%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.9%.

The company's shares have seen an increase of 1.46% over the last month, surpassing the Computer and Technology sector's loss of 1.5% and the S&P 500's gain of 1.27%.

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 August 13, 2026. The company's earnings per share (EPS) are projected to be $0.47, reflecting a 20.51% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $731.18 million, indicating a 8.8% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.31 per share and a revenue of $2.91 billion, signifying shifts of +42.59% and +10.25%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. StoneCo Ltd. is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that StoneCo Ltd. has a Forward P/E ratio of 4.83 right now. Its industry sports an average Forward P/E of 20.06, so one might conclude that StoneCo Ltd. is trading at a discount comparatively.

It's also important to note that STNE currently trades at a PEG ratio of 0.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.08.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 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.

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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