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Why StoneCo Ltd. (STNE) Dipped More Than Broader Market Today
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In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $7.63, marking a -1.55% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.51%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq lost 1.07%.
Shares of the company have depreciated by 18.85% over the course of the past month, underperforming the Computer and Technology sector's loss of 9.88%, and the S&P 500's loss of 0.87%.
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 November 12, 2026. The company is expected to report EPS of $0.49, up 13.95% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $715.07 million, up 9.22% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.21 per share and revenue of $2.87 billion, indicating changes of +36.42% and +8.67%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.9% lower. StoneCo Ltd. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, StoneCo Ltd. is currently trading at a Forward P/E ratio of 3.51. This expresses a discount compared to the average Forward P/E of 20.3 of its industry.
We can also see that STNE currently has a PEG ratio of 0.21. 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 was holding an average PEG ratio of 1.27 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 38% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Why StoneCo Ltd. (STNE) Dipped More Than Broader Market Today
In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $7.63, marking a -1.55% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.51%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq lost 1.07%.
Shares of the company have depreciated by 18.85% over the course of the past month, underperforming the Computer and Technology sector's loss of 9.88%, and the S&P 500's loss of 0.87%.
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 November 12, 2026. The company is expected to report EPS of $0.49, up 13.95% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $715.07 million, up 9.22% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.21 per share and revenue of $2.87 billion, indicating changes of +36.42% and +8.67%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.9% lower. StoneCo Ltd. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, StoneCo Ltd. is currently trading at a Forward P/E ratio of 3.51. This expresses a discount compared to the average Forward P/E of 20.3 of its industry.
We can also see that STNE currently has a PEG ratio of 0.21. 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 was holding an average PEG ratio of 1.27 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 38% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.