StoneCo Ltd. (STNE) Outperforms Broader Market: What You Need to Know

Group 1: Company Performance - StoneCo Ltd. closed at $11.59, with a +1.13% change from the previous day, outperforming the S&P 500's gain of 0.27% [1] - Over the past month, shares of StoneCo have depreciated by 0.09%, underperforming the Computer and Technology sector's gain of 2.21% and the S&P 500's gain of 2% [1] - The upcoming earnings report on November 12, 2024, is expected to show earnings of $0.32 per share, reflecting an 18.52% year-over-year growth, while revenue is projected to be $594.78 million, a 7.56% decline from the same quarter last year [2] Group 2: Earnings Estimates - Full-year Zacks Consensus Estimates predict earnings of $1.21 per share and revenue of $2.42 billion, indicating year-over-year changes of +24.74% and +0.24%, respectively [3] - Recent estimate revisions are crucial as they often indicate changing business trends, with positive revisions reflecting analysts' confidence in the company's performance [4] Group 3: Valuation Metrics - StoneCo Ltd. has a Forward P/E ratio of 9.45, which is a discount compared to its industry's Forward P/E of 31.88 [7] - The company has a PEG ratio of 0.4, significantly lower than the Internet-Software industry's average PEG ratio of 2.1 [7] Group 4: Industry Context - The Internet-Software industry is part of the Computer and Technology sector, holding a Zacks Industry Rank of 61, placing it in the top 25% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]