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StoneCo Ltd. (STNE) Sees a More Significant Dip Than Broader Market: Some Facts to Know

StoneCo Ltd. (STNE) closed the latest trading day at $17.26, indicating a -0.63% change from the previous session's end. This change lagged the S&P 500's 0.17% loss on the day. Elsewhere, the Dow saw a downswing of 0.06%, while the tech-heavy Nasdaq depreciated by 0.55%.

Prior to today's trading, shares of the company had lost 2.47% over the past month. This has lagged the Computer and Technology sector's gain of 2.65% and the S&P 500's gain of 3.98% in that time.

Investors will be eagerly watching for the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 18, 2024. In that report, analysts expect StoneCo Ltd. to post earnings of $0.29 per share. This would mark year-over-year growth of 107.14%. In the meantime, our current consensus estimate forecasts the revenue to be $468.47 million, indicating an 8.9% decline compared to the corresponding quarter of the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for StoneCo Ltd. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, StoneCo Ltd. boasts a Zacks Rank of #2 (Buy).

Digging into valuation, StoneCo Ltd. currently has a Forward P/E ratio of 14.48. This expresses a discount compared to the average Forward P/E of 31.66 of its industry.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 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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StoneCo Ltd. (STNE) : Free Stock Analysis Report

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