StoneCo Ltd. (STNE) Gains As Market Dips: What You Should Know

In the latest trading session, StoneCo Ltd. (STNE) closed at $10.75, marking a +1.51% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.37%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 1.33%. Shares of the company have depreciated by 3.73% over the course of the past month, underperforming the Computer and Technology sector's gain of 4.52%, and the S&P 500's gain of 2.02%.Investors will be eagerly watching for the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.47, showcasing a 20.51% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $731.18 million, reflecting a 8.8% rise from the equivalent quarter last year. STNE's full-year Zacks Consensus Estimates are calling for earnings of $2.31 per share and revenue of $2.91 billion. These results would represent year-over-year changes of +42.59% and +10.25%, respectively. It's also important for investors to be aware of any recent modifications to analyst estimates for StoneCo Ltd. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 16.08% increase. StoneCo Ltd. is currently sporting a Zacks Rank of #2 (Buy). Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 4.58. Its industry sports an average Forward P/E of 18.33, so one might conclude that StoneCo Ltd. is trading at a discount comparatively. It's also important to note that STNE currently trades at a PEG ratio of 0.19. 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. The Internet - Software was holding an average PEG ratio of 0.99 at yesterday's closing price. The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 35% echelons of all 250+ industries. 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. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks