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StoneCo Ltd. (STNE) Laps the Stock Market: Here's Why

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StoneCo Ltd. (STNE - Free Report) closed the most recent trading day at $11.49, moving +1.86% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.41%. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq appreciated by 1.11%.

Heading into today, shares of the company had gained 18.36% over the past month, outpacing the Computer and Technology sector's loss of 0.92% and the S&P 500's gain of 1.46%.

The investment community will be paying close attention to the earnings performance of StoneCo Ltd. in its upcoming release. The company is slated to reveal its earnings on November 12, 2026. On that day, StoneCo Ltd. is projected to report earnings of $0.5 per share, which would represent year-over-year growth of 16.28%. Meanwhile, our latest consensus estimate is calling for revenue of $710.03 million, up 8.45% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.23 per share and a revenue of $2.85 billion, indicating changes of +37.65% and +7.98%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.45% increase. Currently, StoneCo Ltd. is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that StoneCo Ltd. has a Forward P/E ratio of 5.07 right now. This expresses a discount compared to the average Forward P/E of 20.63 of its industry.

One should further note that STNE currently holds a PEG ratio of 0.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 1.22 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 32% echelons of all 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.

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

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