StoneCo (STNE) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - StoneCo Ltd. has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for StoneCo is projected at $1.68 per share for the fiscal year ending December 2025, showing no year-over-year change [8]. - Over the past three months, analysts have increased their earnings estimates for StoneCo by 12.8% [8]. Zacks Rating System - The Zacks rating system is based solely on a company's earnings picture, tracking changes in earnings estimates from sell-side analysts [2]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Market Implications - The upgrade to Zacks Rank 1 positions StoneCo among the top 5% of stocks in terms of estimate revisions, suggesting potential for near-term price increases [10]. - Rising earnings estimates and the corresponding rating upgrade reflect an improvement in StoneCo's underlying business, which could lead to higher stock prices as investors respond positively [5].