StoneCo Ltd. (STNE) ended the recent trading session at $10.88, demonstrating a -1.94% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.41%. Meanwhile, the Dow experienced a drop of 1.13%, and the technology-dominated Nasdaq saw a decrease of 0.19%.
Shares of the company have depreciated by 20.5% over the course of the past month, underperforming the Computer and Technology sector's gain of 18.71%, and the S&P 500's gain of 10.02%.
The investment community will be closely monitoring the performance of StoneCo Ltd. in its forthcoming earnings report. The company is scheduled to release its earnings on May 14, 2026. In that report, analysts expect StoneCo Ltd. to post earnings of $0.42 per share. This would mark year-over-year growth of 23.53%. Simultaneously, our latest consensus estimate expects the revenue to be $708.45 million, showing a 13.2% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.99 per share and revenue of $2.82 billion. These totals would mark changes of +22.84% and +6.67%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for StoneCo Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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.
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 3.65% rise in the Zacks Consensus EPS estimate. As of now, StoneCo Ltd. holds a Zacks Rank of #3 (Hold).
Looking at its valuation, StoneCo Ltd. is holding a Forward P/E ratio of 5.57. This expresses a discount compared to the average Forward P/E of 19.38 of its industry.
One should further note that STNE currently holds a PEG ratio of 0.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.09.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 70, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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StoneCo Ltd. (STNE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).