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StoneCo Ltd. (STNE) Stock Moves -1.12%: What You Should Know

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The latest trading session saw StoneCo Ltd. (STNE - Free Report) ending at $9.71, denoting a -1.12% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 1.18% for the day. Elsewhere, the Dow lost 0.76%, while the tech-heavy Nasdaq lost 1.76%.

The company's stock has dropped by 4.1% in the past month, falling short of the Computer and Technology sector's loss of 2.96% and the S&P 500's loss of 3.35%.

Analysts and investors alike will be keeping a close eye on the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company's earnings report is set to go public on November 10, 2023. The company's upcoming EPS is projected at $0.23, signifying a 130% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $405.25 million, down 15.38% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.79 per share and a revenue of $1.98 billion, indicating changes of +139.39% and +6.55%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for StoneCo Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.51% upward. As of now, StoneCo Ltd. holds a Zacks Rank of #3 (Hold).

Looking at its valuation, StoneCo Ltd. is holding a Forward P/E ratio of 12.48. Its industry sports an average Forward P/E of 35.52, so one might conclude that StoneCo Ltd. is trading at a discount comparatively.

One should further note that STNE currently holds a PEG ratio of 0.22. 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. The Internet - Software industry currently had an average PEG ratio of 1.4 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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