Back to top

Image: Bigstock

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

Read MoreHide Full Article

StoneCo Ltd. (STNE - Free Report) closed the most recent trading day at $8.16, moving -2.1% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.6%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 1.18%.

Prior to today's trading, shares of the company had lost 10.14% lagged the Computer and Technology sector's loss of 6.18% and the S&P 500's loss of 0.79%.

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. The company is forecasted to report an EPS of $0.49, showcasing a 13.95% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $715.07 million, up 9.22% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.21 per share and revenue of $2.87 billion. These totals would mark changes of +36.42% and +8.67%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for StoneCo Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.45% fall in the Zacks Consensus EPS estimate. StoneCo Ltd. is currently a Zacks Rank #3 (Hold).

In terms of valuation, StoneCo Ltd. is presently being traded at a Forward P/E ratio of 3.77. This indicates a discount in contrast to its industry's Forward P/E of 21.46.

We can additionally observe that STNE currently boasts a PEG ratio of 0.23. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.27 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 90, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow STNE in the coming trading sessions, be sure to utilize Zacks.com.

Published in