StoneCo Ltd. (STNE) ended the recent trading session at $10.52, demonstrating a -1.5% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 1.09%, and the Nasdaq, a tech-heavy index, added 0.2%.
Shares of the company have appreciated by 0.19% over the course of the past month, outperforming the Computer and Technology sector's loss of 1.22%, and lagging the S&P 500's gain of 1.64%.
The investment community will be paying close attention to the earnings performance of StoneCo Ltd. in its upcoming release. It is anticipated that the company will report an EPS of $0.47, marking a 20.51% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $731.18 million, up 8.8% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.31 per share and revenue of $2.91 billion, which would represent changes of +42.59% and +10.25%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for StoneCo Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 remained unchanged. StoneCo Ltd. presently features a Zacks Rank of #2 (Buy).
Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 4.62. This expresses a discount compared to the average Forward P/E of 19.93 of its industry.
We can additionally observe that STNE currently boasts a PEG ratio of 0.2. 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 had an average PEG ratio of 1.1 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 39% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).