StoneCo Ltd. (STNE) Falls More Steeply Than Broader Market: What Investors Need to Know

The investment community will be closely monitoring the performance of StoneCo Ltd. in its forthcoming earnings report. The company is scheduled to release its earnings on August 13, 2026. On that day, StoneCo Ltd. is projected to report earnings of $0.46 per share, which would represent year-over-year growth of 17.95%. Meanwhile, the latest consensus estimate predicts the revenue to be $731.18 million, indicating a 8.8% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $2.27 per share and a revenue of $2.91 billion, demonstrating changes of +40.12% and +10.25%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.73% decrease. StoneCo Ltd. is holding a Zacks Rank of #4 (Sell) right now.

With respect to valuation, StoneCo Ltd. is currently being traded at a Forward P/E ratio of 4.92. This indicates a discount in contrast to its industry's Forward P/E of 20.42.

Meanwhile, STNE's PEG ratio is currently 0.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.14 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 41% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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