StoneCo Ltd. (STNE) Stock Drops Despite Market Gains: Important Facts to Note

StoneCo Ltd. (STNE) ended the recent trading session at $13.19, demonstrating a -1.42% change from the preceding day's closing price. This change lagged the S&P 500's 0.02% gain on the day. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq gained 0.33%. Coming into today, shares of the company had lost 12.89% in the past month. In that same time, the Computer and Technology sector gained 6.31%, while the S&P 500 gained 4.93%. Market participants will be closely following the financial results of StoneCo Ltd. in its upcoming release. The company plans to announce its earnings on August 7, 2025. The company's earnings per share (EPS) are projected to be $0.36, reflecting a 20% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $653.09 million, indicating a 6.17% increase compared to the same quarter of the previous year. STNE's full-year Zacks Consensus Estimates are calling for earnings of $1.49 per share and revenue of $2.65 billion. These results would represent year-over-year changes of +10.37% and +7.56%, respectively. It is also important to note the recent changes to analyst estimates for StoneCo Ltd. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.42% increase. StoneCo Ltd. is currently a Zacks Rank #3 (Hold). Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 8.98. This represents a discount compared to its industry average Forward P/E of 29.26. Meanwhile, STNE's PEG ratio is currently 0.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 2.21 as of yesterday's close. The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Should You Invest in StoneCo Ltd. (STNE)?Before you invest in StoneCo Ltd. (STNE), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks