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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.