StoneCo Ltd. (STNE) Stock Sinks As Market Gains: Here's Why

StoneCo Ltd. (STNE) ended the recent trading session at $11.35, demonstrating a -1.39% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.74% for the day.Shares of the company witnessed a gain of 6.08% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.99% and the S&P 500's gain of 3.16%.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 November 12, 2024. In that report, analysts expect StoneCo Ltd. to post earnings of $0.32 per share. This would mark year-over-year growth of 18.52%. In the meantime, our current consensus estimate forecasts the revenue to be $594.78 million, indicating a 7.56% decline compared to the corresponding quarter of the prior year.For the full year, the Zacks Consensus Estimates project earnings of $1.21 per share and a revenue of $2.42 billion, demonstrating changes of +24.74% and +0.24%, respectively, from the preceding year.It is also important to note the recent changes to analyst estimates for StoneCo Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.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 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. StoneCo Ltd. presently features a Zacks Rank of #1 (Strong Buy).Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 9.49. This denotes a discount relative to the industry's average Forward P/E of 32.9.Also, we should mention that STNE has a PEG ratio of 0.4. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently had an average PEG ratio of 2.44 as of yesterday's close.The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StoneCo Ltd. (STNE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks