The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about StoneCo Ltd. (STNE) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.StoneCo currently has an aver ...

Industry Overview - The Internet Software and Services sector is experiencing growth due to increased IT spending on hybrid operating environments and the high penetration of mobile devices, prompting businesses to invest in web-based infrastructure, applications, and security software [1][3] - The Internet Software industry is ranked in the top 37% of Zacks Industry Rank, indicating an expectation to outperform the market in the next three to six months [2] Growth Drivers - The industry is benefiting from the global digital transformation and the rapid adoption of Software as a Service (SaaS), which provides flexible and cost-effective application delivery [3] - There is a growing demand for web-based cybersecurity software due to the need to secure cloud platforms against cyber-attacks, leading to increased demand for performance management monitoring tools [5] Company Highlights Affirm Holdings Inc. (AFRM) - Affirm is projected to achieve revenues between $3.13 billion and $3.19 billion in fiscal 2025, driven by growing active merchant numbers and partnerships with companies like Apple Pay [11] - The expected revenue and earnings growth rates for Affirm are 36.9% and 96.4%, respectively, for the current year, with a short-term price target indicating a potential upside of 112.4% from the last closing price of $40.49 [12][13] Five9 Inc. (FIVN) - Five9 offers intelligent cloud software for contact centers, benefiting from the adoption of AI tools, with a focus on personalized AI agents [14][16] - The expected revenue and earnings growth rates for Five9 are 9.8% and 5.7%, respectively, with a short-term price target suggesting a maximum upside of 190.4% from the last closing price of $23.07 [17] Unity Software Inc. (U) - Unity provides a platform for creating interactive, real-time 3D content across various devices, catering to developers and content creators [18][19] - The expected revenue and earnings growth rates for Unity are -2% and 31%, respectively, with a short-term price target indicating a potential upside of 82% from the last closing price of $19.23 [20][21] Olo Inc. (OLO) - Olo operates an open SaaS platform for restaurants, facilitating digital ordering and payment solutions, enhancing guest experiences [22][23] - The expected revenue and earnings growth rates for Olo are 17.5% and 40.9%, respectively, with a short-term price target suggesting a maximum upside of 62.1% from the last closing price of $6.17 [25] StoneCo Ltd. (STNE) - StoneCo provides financial technology solutions for electronic commerce in Brazil, distributing through proprietary Stone Hubs [26] - The expected revenue and earnings growth rates for StoneCo are 4.1% and -6.7%, respectively, with a short-term price target indicating a potential upside of 90.8% from the last closing price of $11.53 [27][28]

Core Insights - StoneCo Ltd. is positioned to potentially continue its earnings-beat streak in the upcoming report, having achieved an average surprise of 15.63% over the last two quarters [1][5]. Earnings Performance - In the last reported quarter, StoneCo posted earnings of $0.39 per share, exceeding the Zacks Consensus Estimate of $0.32 per share, resulting in a surprise of 21.88% [2]. - In the previous quarter, the company was expected to earn $0.32 per share but delivered $0.35 per share, achieving a surprise of 9.38% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for StoneCo, with a positive Earnings ESP of +5.17%, indicating bullish sentiment among analysts regarding the company's earnings prospects [5][8]. - The combination of a positive Earnings ESP and a Zacks Rank 1 (Strong Buy) suggests a high likelihood of another earnings beat in the upcoming report, expected on May 8, 2025 [8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7].

Group 1 - StoneCo Ltd. will announce its first quarter 2025 financial results on May 08, 2025, after market close [1] - A conference call to discuss the results will take place on the same day at 5:00 PM ET [1] - The company will enter a Quiet Period related to its first quarter 2025 financial results starting April 24, 2025 [3] Group 2 - Stone is a leading provider of financial technology and software solutions that enable merchants to conduct commerce seamlessly across multiple channels [4]

StoneCo Ltd. (STNE) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in ...

Investors might want to bet on StoneCo Ltd. (STNE) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individua ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends StoneCo. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Group 1: Stock Performance and Price Targets - StoneCo Ltd. (STNE) closed at $10.62, with a 14.7% gain over the past four weeks, and a mean price target of $13.41 indicating a 26.3% upside potential [1] - The average of 10 short-term price targets ranges from a low of $6 to a high of $22, with a standard deviation of $5.05, suggesting variability in analyst estimates [2] - The lowest estimate indicates a potential decline of 43.5%, while the most optimistic estimate suggests a 107.2% upside [2] Group 2: Analyst Consensus and Earnings Estimates - Analysts show strong agreement on the company's ability to report better earnings than previously predicted, which supports the view of potential upside [4] - The Zacks Consensus Estimate for the current year has increased by 3.2% due to one estimate moving higher over the last 30 days without any negative revisions [11] - STNE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [12] Group 3: Price Target Reliability and Analyst Behavior - Price targets set by analysts are often questioned for their reliability, as empirical research indicates they rarely predict actual stock price movements [6][9] - Analysts may set overly optimistic price targets due to business incentives related to their firms' interests in the companies they cover [7] - A low standard deviation in price targets indicates a high degree of agreement among analysts regarding the stock's price movement direction, serving as a starting point for further research [8]

Group 1 - StoneCo Ltd. (STNE) has reached an important support level and surpassed resistance at the 200-day moving average, indicating a long-term bullish trend [1][2] - STNE has moved 19.8% higher over the last four weeks, suggesting potential for further gains [2] - The company is currently rated as a Zacks Rank 2 (Buy), reflecting positive market sentiment [2] Group 2 - Earnings estimate revisions for STNE show one upward revision and no downward revisions for the current fiscal year, indicating a positive outlook [3] - The consensus earnings estimate for STNE has also increased, further supporting the bullish sentiment [3] - Investors are encouraged to monitor STNE for potential gains due to its key technical levels and favorable earnings revisions [3]

Core Insights - StoneCo's stock rose 14.2% this week due to better-than-expected quarterly results [1] - The company reported fourth-quarter sales of 3.61 billion Brazilian real (approximately $636 million), surpassing analyst expectations [2] - Non-GAAP earnings per share were $0.40, exceeding the average analyst target by $0.06 [2] Financial Performance - Revenue increased approximately 11% year-over-year in Q4, while adjusted earnings per share rose about 47% [3] - Total payment volumes for small and medium-sized business customers grew by 22% compared to the prior year [3] - The company is rapidly scaling its credit business, contributing to sales growth [3] Market Outlook - Despite the recent stock rally, StoneCo's stock is down roughly 34% over the past year due to macroeconomic pressures in Brazil [4] - Inflation in Brazil is beginning to cool, which may lead to improved business results and stock performance for StoneCo [5] - The stock is currently trading at approximately 8 times this year's expected earnings, indicating it may be undervalued [5]