StoneCo Ltd. (STNE) ended the recent trading session at $9.37, demonstrating a +1.52% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 1.04%. Elsewhere, the Dow gained 0.77%, while the tech-heavy Nasdaq added 1.51%.

The company's stock has climbed by 5.61% in the past month, exceeding the Computer and Technology sector's gain of 1.48% and the S&P 500's gain of 3.92%.

The upcoming earnings release of StoneCo Ltd. will be of great interest to investors. The company is expected to report EPS of $0.32, down 11.11% from the prior-year quarter. 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.

It is also important to note the recent changes to analyst estimates for StoneCo Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, StoneCo Ltd. boasts a Zacks Rank of #5 (Strong Sell).

With respect to valuation, StoneCo Ltd. is currently being traded at a Forward P/E ratio of 8. This indicates a discount in contrast to its industry's Forward P/E of 31.09.

We can also see that STNE currently has a PEG ratio of 0.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.33.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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 Report

To read this article on Zacks.com click here.

Zacks Investment Research