The latest trading session saw StoneCo Ltd. (STNE) ending at $9.34, denoting a -0.53% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.39%. Elsewhere, the Dow gained 0.71%, while the tech-heavy Nasdaq added 0.2%.

The the stock of company has risen by 13.13% in the past month, leading the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 1.7%.

Investors will be eagerly watching for the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.32, showcasing a 11.11% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $581.37 million, indicating a 11.36% decline compared to the corresponding quarter of the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for StoneCo Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 3.89% lower. StoneCo Ltd. presently features a Zacks Rank of #5 (Strong Sell).

In terms of valuation, StoneCo Ltd. is currently trading at a Forward P/E ratio of 8.14. This valuation marks a discount compared to its industry's average Forward P/E of 31.7.

We can additionally observe that STNE currently boasts a PEG ratio of 0.38. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 2.32 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.

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