The latest trading session saw StoneCo Ltd. (STNE) ending at $12.40, denoting a +1.31% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.13%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.52%.

Heading into today, shares of the company had lost 15.24% over the past month, lagging the Computer and Technology sector's gain of 1.56% and the S&P 500's gain of 3.67% in that time.

The investment community will be paying close attention to the earnings performance of StoneCo Ltd. in its upcoming release. The company is forecasted to report an EPS of $0.29, showcasing a 7.41% upward movement from the corresponding quarter of the prior year. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $1.10 per share and a revenue of $2.36 billion, signifying shifts of +13.4% and -2.55%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 25.06% downward. At present, StoneCo Ltd. boasts a Zacks Rank of #3 (Hold).

Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 11.16. This denotes a discount relative to the industry's average Forward P/E of 30.42.

One should further note that STNE currently holds a PEG ratio of 0.44. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. STNE's industry had an average PEG ratio of 2.02 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 87, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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