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StoneCo Ltd. (STNE) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $12.25, marking a -1.69% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.06%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq decreased by 0.44%.

Shares of the company have appreciated by 23.37% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.85%, and the S&P 500's gain of 2.36%.

Market participants will be closely following the financial results of StoneCo Ltd. in its upcoming release. The company plans to announce its earnings on November 12, 2026. It is anticipated that the company will report an EPS of $0.5, marking a 16.28% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $710.03 million, indicating a 8.45% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $2.23 per share and a revenue of $2.85 billion, demonstrating changes of +37.65% and +7.98%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for StoneCo Ltd. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 3.05% fall in the Zacks Consensus EPS estimate. Right now, StoneCo Ltd. possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, StoneCo Ltd. is holding a Forward P/E ratio of 5.6. This signifies a discount in comparison to the average Forward P/E of 20.96 for its industry.

One should further note that STNE currently holds a PEG ratio of 0.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.21.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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