Wall Street Analysts Predict a 26.27% Upside in StoneCo (STNE): Here's What You Should Know

Group 1: Stock Performance and Price Targets - StoneCo Ltd. (STNE) closed at $10.62, with a 14.7$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]