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StoneCo Ltd. (STNE) Stock Falls Amid Market Uptick: What Investors Need to Know
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In the latest close session, StoneCo Ltd. (STNE - Free Report) was down 1.94% at $10.10. This change lagged the S&P 500's 0.86% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.96%.
Prior to today's trading, shares of the company had gained 0.68% outpaced the Computer and Technology sector's loss of 0.56% and the S&P 500's loss of 1.96%.
The investment community will be closely monitoring the performance of StoneCo Ltd. in its forthcoming earnings report. The company is predicted to post an EPS of $0.51, indicating a 18.6% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $722.82 million, showing a 10.4% escalation compared to the year-ago quarter.
STNE's full-year Zacks Consensus Estimates are calling for earnings of $2.3 per share and revenue of $2.89 billion. These results would represent year-over-year changes of +41.98% and +9.42%, respectively.
Investors should also note any recent changes to analyst estimates for StoneCo Ltd. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.17% higher within the past month. StoneCo Ltd. is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 4.48. This expresses a discount compared to the average Forward P/E of 19.87 of its industry.
One should further note that STNE currently holds a PEG ratio of 0.27. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.07.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
View the Zacks #1 Rank List
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StoneCo Ltd. (STNE) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest close session, StoneCo Ltd. (STNE - Free Report) was down 1.94% at $10.10. This change lagged the S&P 500's 0.86% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.96%.
Prior to today's trading, shares of the company had gained 0.68% outpaced the Computer and Technology sector's loss of 0.56% and the S&P 500's loss of 1.96%.
The investment community will be closely monitoring the performance of StoneCo Ltd. in its forthcoming earnings report. The company is predicted to post an EPS of $0.51, indicating a 18.6% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $722.82 million, showing a 10.4% escalation compared to the year-ago quarter.
STNE's full-year Zacks Consensus Estimates are calling for earnings of $2.3 per share and revenue of $2.89 billion. These results would represent year-over-year changes of +41.98% and +9.42%, respectively.
Investors should also note any recent changes to analyst estimates for StoneCo Ltd. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.17% higher within the past month. StoneCo Ltd. is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 4.48. This expresses a discount compared to the average Forward P/E of 19.87 of its industry.
One should further note that STNE currently holds a PEG ratio of 0.27. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.07.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.