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

In the latest trading session, StoneCo Ltd. (STNE) closed at $15.30, marking a +0.26% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.88%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, lost 2.05%.

The company's stock has dropped by 9% in the past month, falling short of the Computer and Technology sector's loss of 3.33% and the S&P 500's loss of 2.57%.

Investors will be eagerly watching for the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 13, 2024. The company is forecasted to report an EPS of $0.28, showcasing a 100% upward movement from the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.27 per share and a revenue of $2.3 billion, signifying shifts of +30.93% and -4.75%, respectively, from the last year.

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Additionally, investors should keep an eye on any recent revisions to analyst forecasts for StoneCo Ltd. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has moved 4.75% higher. StoneCo Ltd. is currently sporting a Zacks Rank of #2 (Buy).

With respect to valuation, StoneCo Ltd. is currently being traded at a Forward P/E ratio of 12.04. This valuation marks a discount compared to its industry's average Forward P/E of 27.78.

Also, we should mention that STNE has a PEG ratio of 0.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently had an average PEG ratio of 1.72 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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