In the latest trading session, StoneCo Ltd. (STNE) closed at $9.55, marking a +1.38% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.73% for the day. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 1.19%.
The stock of company has fallen by 8.72% in the past month, lagging the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.
The upcoming earnings release of StoneCo Ltd. will be of great interest to investors. The company's upcoming EPS is projected at $0.5, signifying a 16.28% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $710.03 million, up 8.45% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.23 per share and revenue of $2.85 billion. These totals would mark changes of +37.65% and +7.98%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for StoneCo Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.05% downward. Currently, StoneCo Ltd. is carrying a Zacks Rank of #3 (Hold).
Investors should also note StoneCo Ltd.'s current valuation metrics, including its Forward P/E ratio of 4.23. This signifies a discount in comparison to the average Forward P/E of 19.59 for its industry.
We can additionally observe that STNE currently boasts 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).