The latest trading session saw StoneCo Ltd. (STNE) ending at $8.58, denoting a +1.66% adjustment from its last day's close. This change outpaced the S&P 500's 0.61% gain on the day. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.28%.

Shares of the company witnessed a gain of 4.46% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.24% and the S&P 500's gain of 2.08%.

Market participants will be closely following the financial results of StoneCo Ltd. in its upcoming release. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $585.02 million, down 10.8% from the year-ago period.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for StoneCo Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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, there's been a 12.41% fall in the Zacks Consensus EPS estimate. Right now, StoneCo Ltd. possesses a Zacks Rank of #4 (Sell).

In the context of valuation, StoneCo Ltd. is at present trading with a Forward P/E ratio of 7.32. This denotes a discount relative to the industry's average Forward P/E of 29.01.

Investors should also note that STNE has a PEG ratio of 0.34 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.19 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 41, finds itself in the top 17% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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