StoneCo Ltd. (STNE) Rises As Market Takes a Dip: Key Facts

Core Viewpoint - StoneCo Ltd. is showing positive stock performance and is expected to report strong earnings growth in the upcoming earnings report, despite a slight decline in revenue projections compared to the previous year [1][3]. Company Performance - StoneCo Ltd. closed at $13.58, reflecting a +1.12% increase, outperforming the S&P 500, which fell by 0.16% [1]. - Over the past month, shares of StoneCo Ltd. have gained 13.72%, significantly surpassing the Computer and Technology sector's gain of 0.47% and the S&P 500's gain of 1.96% [8]. Earnings Forecast - The company is scheduled to release its earnings on August 14, 2024, with a forecasted EPS of $0.34, indicating a 78.95% increase from the same quarter last year [3]. - The Zacks Consensus Estimates for the full year project earnings of $1.46 per share and revenue of $2.44 billion, representing changes of +50.52% and +0.77%, respectively, from the prior year [9]. Analyst Projections - Recent shifts in analyst projections for StoneCo Ltd. are crucial, as positive changes indicate optimism regarding the company's business and profitability [2]. - The Zacks Consensus EPS estimate has increased by 2.33% over the past month, and StoneCo Ltd. currently holds a Zacks Rank of 2 (Buy) [10]. Valuation Metrics - StoneCo Ltd. is currently trading at a Forward P/E ratio of 9.18, which is a discount compared to the industry's average Forward P/E of 30.41 [5]. - The company has a PEG ratio of 0.35, significantly lower than the average PEG ratio of 1.78 for the Internet - Software industry [11]. Industry Context - The Internet - Software industry is part of the Computer and Technology sector, holding a Zacks Industry Rank of 86, placing it in the top 35% of over 250 industries [6].