In the latest trading session, StoneCo Ltd. (STNE) closed at $26.93, marking a +0.41% move from the previous day. This move outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq gained 0.21%.
Prior to today's trading, shares of the company had lost 35.26% over the past month. This has lagged the Computer and Technology sector's gain of 5.87% and the S&P 500's gain of 4.65% in that time.
Investors will be hoping for strength from STNE as it approaches its next earnings release.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.83 per share and revenue of $490.60 million, which would represent changes of +112.82% and +18.29%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for STNE. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.19% lower. STNE is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, STNE is holding a Forward P/E ratio of 32.18. This valuation marks a discount compared to its industry's average Forward P/E of 53.5.
We can also see that STNE currently has a PEG ratio of 0.58. 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. The Internet - Software was holding an average PEG ratio of 3.22 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% 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.
To follow STNE in the coming trading sessions, be sure to utilize Zacks.com.
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