The latest trading session saw StoneCo Ltd. (STNE) ending at $14.08, denoting a -1.05% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.58%. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 0.55%.

Shares of the company witnessed a gain of 35.78% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.6% and the S&P 500's loss of 0.84%.

The investment community will be closely monitoring the performance of StoneCo Ltd. in its forthcoming earnings report. The company is scheduled to release its earnings on May 8, 2025. The company's upcoming EPS is projected at $0.32, signifying a 10.34% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $572.46 million, down 8.13% from the prior-year quarter.

STNE's full-year Zacks Consensus Estimates are calling for earnings of $1.26 per share and revenue of $2.5 billion. These results would represent year-over-year changes of -6.67% and +1.5%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for StoneCo Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Within the past 30 days, our consensus EPS projection has moved 6.16% higher. As of now, StoneCo Ltd. holds a Zacks Rank of #1 (Strong Buy).

Digging into valuation, StoneCo Ltd. currently has a Forward P/E ratio of 11.26. This expresses a discount compared to the average Forward P/E of 25.98 of its industry.

Meanwhile, STNE's PEG ratio is currently 0.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. STNE's industry had an average PEG ratio of 2.2 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 43% 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.

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

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

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