StoneCo Ltd. (STNE) closed the most recent trading day at $9.16, moving -3.48% from the previous trading session. This change lagged the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.01%.
The stock of company has fallen by 2.37% in the past month, lagging the Computer and Technology sector's gain of 5.26% and the S&P 500's gain of 0.53%.
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 $0.49, showcasing a 13.95% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $701.6 million, reflecting a 7.16% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.22 per share and revenue of $2.83 billion, indicating changes of +37.04% and +7.09%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for StoneCo Ltd. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 3.48% lower within the past month. As of now, StoneCo Ltd. holds a Zacks Rank of #3 (Hold).
Investors should also note StoneCo Ltd.'s current valuation metrics, including its Forward P/E ratio of 4.28. This expresses a discount compared to the average Forward P/E of 19.86 of its industry.
It's also important to note that STNE currently trades at a PEG ratio of 0.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. STNE's industry had an average PEG ratio of 1.15 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 39% 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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This article originally published on Zacks Investment Research (zacks.com).