In the latest market close, StoneCo Ltd. (STNE) reached $9.18, with a -0.86% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Coming into today, shares of the company had lost 2.01% in the past month. In that same time, the Computer and Technology sector lost 11.69%, while the S&P 500 lost 7.29%.

The upcoming earnings release of StoneCo Ltd. will be of great interest to investors. The company's earnings report is expected on March 18, 2025. The company's earnings per share (EPS) are projected to be $0.32, reflecting a 11.11% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $581.37 million, showing a 11.36% drop compared to the year-ago quarter.

It's also important for investors to be aware of any recent modifications to analyst estimates for StoneCo Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, StoneCo Ltd. is carrying a Zacks Rank of #4 (Sell).

From a valuation perspective, StoneCo Ltd. is currently exchanging hands at a Forward P/E ratio of 8.03. This valuation marks a discount compared to its industry's average Forward P/E of 26.93.

One should further note that STNE currently holds 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.07.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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

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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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