Yahoo Finance StoneCo Ltd. (STNE) Falls More Steeply Than Broader Market: What Investors Need to Know
StoneCo Ltd. (STNE) closed the most recent trading day at $11.99, moving -0.66% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.41%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 0.71%.
The company's stock has dropped by 13.1% in the past month, falling short of the Computer and Technology sector's gain of 6.52% and the S&P 500's gain of 3.53%.
The investment community will be paying close attention to the earnings performance of StoneCo Ltd. in its upcoming release. The company is predicted to post an EPS of $0.35, indicating an 84.21% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $617.71 million, indicating a 3.46% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.43 per share and a revenue of $2.55 billion, representing changes of +47.42% and +5.37%, respectively, from the prior year.
Any recent changes to analyst estimates for StoneCo Ltd. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 11.94% rise in the Zacks Consensus EPS estimate. StoneCo Ltd. currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, StoneCo Ltd. is currently exchanging hands at a Forward P/E ratio of 8.44. Its industry sports an average Forward P/E of 30.12, so one might conclude that StoneCo Ltd. is trading at a discount comparatively.
Meanwhile, STNE's PEG ratio is currently 0.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 1.74 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% 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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StoneCo Ltd. (STNE) : Free Stock Analysis Report
