StoneCo Ltd. (STNE) closed the latest trading day at $9.14, indicating a -1.19% change from the previous session's end. This change was narrower than the S&P 500's 1.76% loss on the day. Elsewhere, the Dow saw a downswing of 1.48%, while the tech-heavy Nasdaq depreciated by 2.64%.

The company's shares have seen an increase of 0.87% over the last month, surpassing the Computer and Technology sector's loss of 4.55% and the S&P 500's loss of 1.26%.

Investors will be eagerly watching for the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 18, 2025. The company's upcoming EPS is projected at $0.32, signifying a 11.11% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $581.37 million, down 11.36% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 remained stagnant. StoneCo Ltd. presently features a Zacks Rank of #4 (Sell).

Digging into valuation, StoneCo Ltd. currently has a Forward P/E ratio of 8.02. This expresses a discount compared to the average Forward P/E of 27.87 of its industry.

We can additionally observe that STNE currently boasts a PEG ratio of 0.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. STNE's industry had an average PEG ratio of 2.04 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 83, which puts it in the top 34% 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.

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

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StoneCo Ltd. (STNE) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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