StoneCo Ltd. (STNE) Registers a Bigger Fall Than the Market: Important Facts to Note

Core Viewpoint - StoneCo Ltd. is experiencing a notable performance in the market, with upcoming earnings expected to show significant growth in both earnings per share and revenue compared to the previous year [2][3]. Group 1: Stock Performance - StoneCo Ltd. closed at $18.57, reflecting a -1.07% change from the previous day, underperforming the S&P 500, which had a loss of 0.5% [1]. - Prior to the latest trading session, StoneCo's shares had increased by 17.9%, outperforming the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 2.74% [1]. Group 2: Earnings Projections - The projected earnings per share (EPS) for StoneCo Ltd. is $0.41, indicating a 17.14% increase from the same quarter last year [2]. - The consensus estimate for revenue is $663.59 million, reflecting a 9.6% rise from the equivalent quarter last year [2]. Group 3: Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $1.62 per share and revenue of $2.7 billion, representing increases of +20% and +9.78% respectively from the previous year [3]. - Recent modifications to analyst estimates suggest positive sentiment regarding StoneCo's business and profitability [3]. Group 4: Valuation Metrics - StoneCo Ltd. has a Forward P/E ratio of 11.61, which is a discount compared to the industry average Forward P/E of 31.31 [5]. - The company has a PEG ratio of 0.38, significantly lower than the Internet - Software industry average PEG ratio of 2.28 [6]. Group 5: Industry Ranking - The Internet - Software industry, which includes StoneCo, has a Zacks Industry Rank of 73, placing it in the top 30% of over 250 industries [6]. - The Zacks Rank system indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7].