The latest trading session saw StoneCo Ltd. (STNE) ending at $10.92, denoting a -0.36% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.28%.

The company's shares have seen a decrease of 10.97% over the last month, not keeping up with the Computer and Technology sector's gain of 3.88% and the S&P 500's gain of 3.48%.

Analysts and investors alike will be keeping a close eye on the performance of StoneCo Ltd. in its upcoming earnings disclosure. On that day, StoneCo Ltd. is projected to report earnings of $0.32 per share, which would represent year-over-year growth of 18.52%. Meanwhile, the latest consensus estimate predicts the revenue to be $594.78 million, indicating a 7.56% decrease compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.21 per share and revenue of $2.42 billion, indicating changes of +24.74% and +0.24%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for StoneCo Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 10.64% higher. Right now, StoneCo Ltd. possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, StoneCo Ltd. is currently exchanging hands at a Forward P/E ratio of 9.03. This denotes a discount relative to the industry's average Forward P/E of 31.87.

We can additionally observe that STNE currently boasts a PEG ratio of 0.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.14 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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