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Zacks.com users have recently been watching StoneCo (STNE) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

StoneCo Ltd. (STNE - Free Report) closed the most recent trading day at $8.33, moving -27.44% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.7% for the day. Meanwhile, the Dow experienced a rise of 0.28%, and the technology-dominated Nasdaq saw an increase of 0.83%.

The company's stock has climbed by 23.44% in the past month, exceeding the Computer and Technology sector's loss of 7.7% and the S&P 500's loss of 1.21%.

Market participants will be closely following the financial results of StoneCo Ltd. in its upcoming release. The company plans to announce its earnings on November 12, 2026. On that day, StoneCo Ltd. is projected to report earnings of $0.49 per share, which would represent year-over-year growth of 13.95%. Alongside, our most recent consensus estimate is anticipating revenue of $715.07 million, indicating a 9.22% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.21 per share and a revenue of $2.87 billion, signifying shifts of +36.42% and +8.67%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.45% decrease. Right now, StoneCo Ltd. possesses a Zacks Rank of #3 (Hold).

In terms of valuation, StoneCo Ltd. is currently trading at a Forward P/E ratio of 5.2. This indicates a discount in contrast to its industry's Forward P/E of 20.75.

We can also see that STNE currently has a PEG ratio of 0.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 1.31 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 34% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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.

On October 21, 2026, StoneCo Ltd STNE shares fell 4.3% today, bringing the current price to $11.55. Over the past 52 weeks, the stock has ranged from a low of $8.95 to a high of $19.64.

GF Value™ verdict: STNE is currently trading at $11.55, which is 72.0% below its GF Value™ estimate of $41.31.GF Score™: STNE has a score of 61/100, indicating it is rated as Above Average.Most notable signal: Insider activity shows net selling of $0.2M over the past 12 months.Is STNE Overvalued or Undervalued?The current market price of StoneCo Ltd STNE at $11.55 is significantly below the GF Value™ estimate of $41.31, suggesting that the stock is undervalued by 72.0%. This substantial margin of safety presents a compelling opportunity for investors who believe in the company's growth potential. However, the GF Valuation label indicates a possible value trap, advising caution before making investment decisions. GF Value™ is GuruFocus' proprietary intrinsic-value estimate, calculated based on historical trading multiples, past business growth, and projections of future performance.

While the undervaluation may attract bargain hunters, it is essential to consider the potential risks involved, including the possibility that the market may have valid concerns regarding the company's financial health or future growth prospects. Thus, while the GF Value™ presents an attractive opportunity, investors should weigh it against the broader context of the company's operating performance and market conditions.

How Does STNE's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)4.7x11.2xForward P/E5.3xN/AStoneCo's current P/E ratio of 4.7x is considerably lower than its 5-year median P/E of 11.2x, indicating that the stock is trading at a discount compared to its historical valuation. This analysis aligns with the GF Value™ verdict, reinforcing the perception that STNE is undervalued. The low P/E could indicate an opportunity for value-driven investors, although it may also signal underlying issues that the market is currently pricing into the stock.

What Does STNE's GF Score™ Tell Us?The GF Score™ measures a stock's overall financial health and growth potential based on various factors, including financial strength, profitability, growth, valuation, and momentum. StoneCo's GF Score™ of 61/100 reflects its Above Average rating, with its strongest area being growth rank at 8/10, while it faces challenges in profitability and valuation ranks, both rated at 5/10 and 2/10, respectively.

MetricRatingGF Score™61Financial Strength3/10Profitability5/10Growth8/10Valuation2/10Momentum2/10While StoneCo's growth rank is a positive indicator of its potential, the low valuation and momentum ranks suggest that the stock may face headwinds in the near term. The financial strength score of 3/10 indicates concerns about the company's ability to maintain its operations and meet obligations, which could further impact investor sentiment.

What Are Gurus and Insiders Doing with STNE?Currently, three gurus hold positions in StoneCo Ltd, with one adding to their stake and four trimming their positions in recent quarters. This mixed signal suggests a level of caution among knowledgeable investors regarding the stock’s prospects. Additionally, insider activity over the past 12 months shows a net selling of $0.2M, with insiders purchasing $0.2M and selling $0.4M worth of shares. This pattern of insider selling may reflect a lack of confidence in the company's immediate future, warranting careful consideration for potential investors.

What This Means for InvestorsGiven the significant undervaluation indicated by the GF Value™ and the low P/E ratio compared to historical levels, StoneCo Ltd STNE appears to be undervalued at its current price of $11.55. However, the potential value trap indicated by the GF Valuation label and the mixed signals from insider activity suggest that investors should approach with caution. For those interested in further exploring StoneCo's financials and valuation, more information can be found on the StoneCo Ltd (STNE) stock page and the GF Value™ page.

Frequently Asked QuestionsWhat is STNE's GF Score™?

STNE has a GF Score™ of 61/100, indicating an Above Average rating based on its financial health and growth potential.

Is STNE overvalued or undervalued?

According to the GF Value™, STNE is undervalued, trading at 72.0% below its estimated fair value of $41.31.

What is STNE's P/E ratio?

STNE's current P/E ratio is 4.7x, which is significantly below its 5-year median of 11.2x, indicating that the stock is trading at a discount to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Kapitalo Investimentos Ltda acquired a new position in StoneCo Ltd. (NASDAQ:STNE – Free Report) during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 460,000 shares of the company’s stock, valued at approximately $4,296,000. StoneCo makes up about 0.3% of Kapitalo Investimentos Ltda’s investment portfolio, making the stock its 26th biggest position. Kapitalo Investimentos Ltda owned about 0.18% of StoneCo as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently made changes to their positions in STNE. Bank of America Corp DE increased its stake in shares of StoneCo by 151.7% in the first quarter. Bank of America Corp DE now owns 6,032,572 shares of the company’s stock valued at $85,180,000 after buying an additional 3,636,276 shares in the last quarter. Andra AP fonden raised its holdings in shares of StoneCo by 159.5% in the second quarter. Andra AP fonden now owns 1,593,600 shares of the company’s stock valued at $17,275,000 after buying an additional 979,400 shares during the last quarter. Assenagon Asset Management S.A. lifted its position in StoneCo by 1,288.4% during the 2nd quarter. Assenagon Asset Management S.A. now owns 577,959 shares of the company’s stock worth $6,265,000 after buying an additional 536,331 shares in the last quarter. Hsbc Holdings PLC lifted its position in StoneCo by 286.6% during the 1st quarter. Hsbc Holdings PLC now owns 163,065 shares of the company’s stock worth $2,298,000 after buying an additional 120,883 shares in the last quarter. Finally, Squadra Investments Gestao DE Recursos LTDA. lifted its position in StoneCo by 435.5% during the 1st quarter. Squadra Investments Gestao DE Recursos LTDA. now owns 6,662,253 shares of the company’s stock worth $94,071,000 after buying an additional 5,418,053 shares in the last quarter. Institutional investors own 73.19% of the company’s stock.

StoneCo Stock Up 5.0% NASDAQ STNE opened at $12.07 on Wednesday. The stock has a fifty day moving average of $10.17 and a 200-day moving average of $11.08. The stock has a market capitalization of $3.00 billion, a P/E ratio of 4.87, a price-to-earnings-growth ratio of 0.31 and a beta of 1.68. StoneCo Ltd. has a 52 week low of $8.95 and a 52 week high of $19.64. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.26 and a current ratio of 1.26.

StoneCo (NASDAQ:STNE – Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The company reported $0.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.46 by $0.01. The business had revenue of $129.73 million for the quarter, compared to analyst estimates of $708.24 million. StoneCo had a return on equity of 22.19% and a net margin of 22.92%. On average, equities research analysts forecast that StoneCo Ltd. will post 2.23 EPS for the current year. Insider Buying and Selling In related news, Director Silvio Morais sold 21,000 shares of StoneCo stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $9.91, for a total value of $208,110.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.

Wall Street Analysts Forecast Growth STNE has been the subject of several research reports. Bank of America cut shares of StoneCo from a “buy” rating to a “neutral” rating and set a $13.00 price objective for the company. in a research report on Wednesday, July 15th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of StoneCo in a research note on Monday, September 14th. Jefferies Financial Group began coverage on shares of StoneCo in a research report on Thursday, July 23rd. They set a “hold” rating and a $12.60 target price on the stock. Finally, UBS Group reiterated a “buy” rating on shares of StoneCo in a research report on Thursday, October 15th. Four equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, StoneCo has a consensus rating of “Hold” and an average price target of $14.30.

View Our Latest Research Report on STNE

StoneCo Profile (Free Report)

StoneCo Ltd. is a financial technology company that provides payment processing and business-management solutions primarily to small and medium-sized businesses in Brazil. Through its Stone brand, the company enables merchants to accept payments in physical stores and online, including card, digital-wallet and other electronic transactions.

Its products and services include point-of-sale terminals, payment gateways, transaction processing, digital banking and financial-account services, as well as working-capital and other credit solutions for eligible merchants.

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In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $12.25, marking a -1.69% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.06%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq decreased by 0.44%.

Shares of the company have appreciated by 23.37% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.85%, and the S&P 500's gain of 2.36%.

Market participants will be closely following the financial results of StoneCo Ltd. in its upcoming release. The company plans to announce its earnings on November 12, 2026. It is anticipated that the company will report an EPS of $0.5, marking a 16.28% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $710.03 million, indicating a 8.45% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $2.23 per share and a revenue of $2.85 billion, demonstrating changes of +37.65% and +7.98%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for StoneCo Ltd. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 3.05% fall in the Zacks Consensus EPS estimate. Right now, StoneCo Ltd. possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, StoneCo Ltd. is holding a Forward P/E ratio of 5.6. This signifies a discount in comparison to the average Forward P/E of 20.96 for its industry.

One should further note that STNE currently holds a PEG ratio of 0.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.21.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

StoneCo Ltd. (NASDAQ:STNE – Get Free Report) was the recipient of unusually large options trading activity on Monday. Stock investors purchased 9,352 call options on the company. This represents an increase of 329% compared to the typical volume of 2,180 call options.

StoneCo Stock Performance Shares of NASDAQ STNE traded up $2.38 during trading hours on Monday, hitting $11.93. 12,348,790 shares of the company’s stock were exchanged, compared to its average volume of 5,331,795. The company’s 50-day moving average price is $9.99 and its 200-day moving average price is $11.26. StoneCo has a 1-year low of $8.95 and a 1-year high of $19.64. The stock has a market capitalization of $2.97 billion, a price-to-earnings ratio of 4.80, a PEG ratio of 0.26 and a beta of 1.68. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.26 and a quick ratio of 1.26.

StoneCo (NASDAQ:STNE – Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The company reported $0.47 EPS for the quarter, topping the consensus estimate of $0.46 by $0.01. StoneCo had a return on equity of 22.19% and a net margin of 22.92%.The company had revenue of $129.73 million for the quarter, compared to the consensus estimate of $708.24 million. On average, sell-side analysts expect that StoneCo will post 2.23 earnings per share for the current fiscal year.

Insider Transactions at StoneCo In other StoneCo news, Director Silvio Morais sold 21,000 shares of the stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $9.91, for a total transaction of $208,110.00. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Hedge Funds Weigh In On StoneCo Large investors have recently bought and sold shares of the stock. Bank of America Corp DE increased its holdings in shares of StoneCo by 151.7% during the 1st quarter. Bank of America Corp DE now owns 6,032,572 shares of the company’s stock worth $85,180,000 after purchasing an additional 3,636,276 shares during the period. Assenagon Asset Management S.A. lifted its stake in shares of StoneCo by 1,288.4% in the second quarter. Assenagon Asset Management S.A. now owns 577,959 shares of the company’s stock valued at $6,265,000 after buying an additional 536,331 shares during the period. Andra AP fonden grew its position in StoneCo by 159.5% during the second quarter. Andra AP fonden now owns 1,593,600 shares of the company’s stock worth $17,275,000 after buying an additional 979,400 shares in the last quarter. Hsbc Holdings PLC increased its stake in StoneCo by 286.6% during the first quarter. Hsbc Holdings PLC now owns 163,065 shares of the company’s stock valued at $2,298,000 after acquiring an additional 120,883 shares during the period. Finally, Squadra Investments Gestao DE Recursos LTDA. raised its holdings in StoneCo by 435.5% in the 1st quarter. Squadra Investments Gestao DE Recursos LTDA. now owns 6,662,253 shares of the company’s stock valued at $94,071,000 after acquiring an additional 5,418,053 shares in the last quarter. 73.19% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth A number of analysts have weighed in on STNE shares. UBS Group reduced their price target on StoneCo from $15.00 to $13.00 and set a “buy” rating for the company in a research report on Friday, August 28th. Weiss Ratings reissued a “hold (c-)” rating on shares of StoneCo in a research note on Monday, September 14th. Jefferies Financial Group began coverage on StoneCo in a report on Thursday, July 23rd. They issued a “hold” rating and a $12.60 target price for the company. Finally, Bank of America cut StoneCo from a “buy” rating to a “neutral” rating and set a $13.00 target price for the company. in a research report on Wednesday, July 15th. Four investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $14.30.

Check Out Our Latest Analysis on STNE

StoneCo Company Profile (Get Free Report)

StoneCo Ltd. is a Brazilian financial technology company that provides payment processing, banking and business-management solutions to entrepreneurs and small and medium-sized businesses. Its services are designed to help merchants accept electronic payments, manage cash flow and operate their businesses through integrated digital tools.

The company’s offerings include point-of-sale and mobile payment solutions, online payment processing, digital banking services, working-capital and credit products, and software for retail and other business operations.

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In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $9.55, marking a +1.38% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.73% for the day. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 1.19%.

The stock of company has fallen by 8.72% in the past month, lagging the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.

The upcoming earnings release of StoneCo Ltd. will be of great interest to investors. The company's upcoming EPS is projected at $0.5, signifying a 16.28% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $710.03 million, up 8.45% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.23 per share and revenue of $2.85 billion. These totals would mark changes of +37.65% and +7.98%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for StoneCo Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.05% downward. Currently, StoneCo Ltd. is carrying a Zacks Rank of #3 (Hold).

Investors should also note StoneCo Ltd.'s current valuation metrics, including its Forward P/E ratio of 4.23. This signifies a discount in comparison to the average Forward P/E of 19.59 for its industry.

We can additionally observe that STNE currently boasts a PEG ratio of 0.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 38% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Investors in StoneCo Ltd. (STNE - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct. 16, 2026 $2.47 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for StoneCo shares, but what is the fundamental picture for the company? Currently, StoneCo is a Zacks Rank #3 (Hold) in the Internet - Software industry that ranks in the Top 37% of our Zacks Industry Rank. Over the last 60 days, our Zacks Consensus Estimate for the current quarter has moved from 50 cents per share to 49 cents in that period.

Given the way analysts feel about StoneCo right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

StoneCo Ltd. (STNE - Free Report) closed the most recent trading day at $9.16, moving -3.48% from the previous trading session. This change lagged the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, added 0.01%.

The stock of company has fallen by 2.37% in the past month, lagging the Computer and Technology sector's gain of 5.26% and the S&P 500's gain of 0.53%.

Investors will be eagerly watching for the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.49, showcasing a 13.95% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $701.6 million, reflecting a 7.16% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.22 per share and revenue of $2.83 billion, indicating changes of +37.04% and +7.09%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for StoneCo Ltd. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.48% lower within the past month. As of now, StoneCo Ltd. holds a Zacks Rank of #3 (Hold).

Investors should also note StoneCo Ltd.'s current valuation metrics, including its Forward P/E ratio of 4.28. This expresses a discount compared to the average Forward P/E of 19.86 of its industry.

It's also important to note that STNE currently trades at a PEG ratio of 0.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. STNE's industry had an average PEG ratio of 1.15 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

In the latest close session, StoneCo Ltd. (STNE - Free Report) was down 1.94% at $10.10. This change lagged the S&P 500's 0.86% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.96%.

Prior to today's trading, shares of the company had gained 0.68% outpaced the Computer and Technology sector's loss of 0.56% and the S&P 500's loss of 1.96%.

The investment community will be closely monitoring the performance of StoneCo Ltd. in its forthcoming earnings report. The company is predicted to post an EPS of $0.51, indicating a 18.6% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $722.82 million, showing a 10.4% escalation compared to the year-ago quarter.

STNE's full-year Zacks Consensus Estimates are calling for earnings of $2.3 per share and revenue of $2.89 billion. These results would represent year-over-year changes of +41.98% and +9.42%, respectively.

Investors should also note any recent changes to analyst estimates for StoneCo Ltd. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.17% higher within the past month. StoneCo Ltd. is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 4.48. This expresses a discount compared to the average Forward P/E of 19.87 of its industry.

One should further note that STNE currently holds a PEG ratio of 0.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.07.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Macroeconomic headwinds are hurting Stoneco (STNE +2.18%).

2 Digital Payment Platforms That Are Crushing PayPal and SquareStoneCo NASDAQ: STNE reported second-quarter 2026 results marked by accelerating total payment volume growth, expanding banking deposits and a larger credit portfolio, while management said elevated interest rates and credit-market pressure have made its full-year targets more challenging.

Chief Executive Officer Mateus Scherer Schwening said the company made “steady progress” on its priorities, including merchant retention, banking and credit expansion, cost discipline and shareholder returns. Total payment volume, or TPV, grew 4% year over year, an improvement from the first quarter that management said reflects early progress from retention initiatives.

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StoneCo Stock May be Basing Like a Rock StoneCo also introduced a new brand positioning, “Stone, the bank for entrepreneurs,” intended to increase awareness of its broader payments, banking and credit offerings. Schwening said many customers continue to view Stone mainly as a payments company, while the company is seeking to deepen relationships through its full financial-services ecosystem.

Financial performance and 2026 outlook Revenue reached BRL 3.6 billion in the quarter, supported by the scaling of the credit business, according to Chief Financial Officer and Investor Relations Officer Diego Ventura Salgado. Adjusted gross profit was broadly unchanged from a year earlier at BRL 1.6 billion, as revenue growth and lower financial expenses were offset by higher loan-loss provisions tied to credit portfolio expansion.

StoneCo Ltd. Stock is in Turnaround Adjusted net income declined slightly year over year, while adjusted earnings per share increased 9%, which Salgado attributed to a lower share count following share repurchases.

For the first half, StoneCo generated BRL 3.1 billion in adjusted gross profit and BRL 4.58 in adjusted basic earnings per share. The company maintained its 2026 guidance of BRL 6.6 billion to BRL 7 billion in adjusted gross profit and BRL 10.80 to BRL 11.40 in adjusted basic EPS.

However, Schwening said the company is focused on reaching the lower end of those ranges because interest rates have remained higher for longer than management expected at the start of the year. Salgado said StoneCo had assumed Brazil’s Selic benchmark rate would end 2026 at 12.5%, compared with a current expectation closer to 14%. He said each 100-basis-point change in the Selic rate has a pretax impact of roughly BRL 200 million to BRL 250 million.

Management expects performance to be weighted toward the second half as credit revenue compounds and commercial retention efforts gain traction.

Retention efforts and payments mix StoneCo’s active client base reached 4.8 million merchants. Management said its efforts to reduce churn have produced faster results among micro merchants, where products and distribution channels are simpler. The company is working to simplify offerings and bundles, align sales-force incentives and reduce operational friction for clients.

For small and medium-sized businesses, the process is more gradual because merchants have a wider range of needs, offerings and channels, Schwening said. He said the company is seeing improvement in both micro-merchant and SMB trends, but cautioned that a broader recovery in retention and TPV would not occur “at the flip of a switch.”

Pix QR-code volumes continued to grow faster than card volumes. Salgado said payment take rates are declining at the margin, primarily due to mix as Pix becomes a larger portion of TPV, as well as certain pricing actions. He said StoneCo evaluates customer economics across the broader relationship rather than on payments or credit as standalone products.

The company also integrated Pagar.me, its historical digital-commerce platform, into Stone. Management said the integration gives merchants a single account and view of online and in-person sales, while potentially improving StoneCo’s ability to cross-sell services and assess credit opportunities.

Credit growth, government programs and risk StoneCo’s credit portfolio reached BRL 3.8 billion, more than double its level a year earlier. Working-capital products were the principal driver, while government-backed loans accounted for roughly BRL 300 million of the portfolio and credit cards represented BRL 400 million.

Retail deposits rose more than 20% year over year to BRL 10.8 billion. Salgado said the growing deposit base has helped reduce funding costs to roughly 85% of CDI, though he expects assets to grow faster than deposits through year-end, which could create pressure on financial expenses.

Credit revenue increased 14%, with a broadly stable yield. Salgado said the growth of government-backed lending reduced average yields because these programs carry lower rates but also lower risk.

Under the FGI Pix program, the government guarantees about 75% of a defaulted amount on average, according to Salgado. This reduces the loss given default and allows StoneCo to hold lower upfront provisions for eligible loans. The company said the programs can help it extend credit to merchants where it was previously less competitive while managing the risk profile of portfolio growth.

Provision expenses totaled BRL 188 million in the quarter, while the cost of risk stood at 21.5%. Management cited rapid portfolio growth, the aging of late-2025 and early-2026 loan vintages, and pressure in its dedicated lending desk. The dedicated desk serves larger clients and has experienced defaults involving some of its largest individual exposures amid a rise in bankruptcy-protection filings in Brazil.

Schwening said the company is responding by shifting more originations toward government-backed products for clients without longstanding relationships or sufficient historical data, and by reducing maximum ticket sizes on the dedicated desk. Management characterized the pressure as mostly macroeconomic rather than fraud-related.

StoneCo said its automated lending desk has shown improvement following second-quarter changes, with first-payment defaults trending down and the June cohort producing its best result in 12 months. The company expects its cost of risk to trend toward the mid- to high-teens over the medium term and to reach the high teens by year-end, though management warned that individual large cases could create quarterly volatility.

Capital returns and issuer-related provision StoneCo’s capital ratio stood at 26% following an extraordinary dividend paid in May from Linx sale proceeds. The company said it returned BRL 4.3 billion to shareholders during the first half through dividends and share repurchases.

During the quarter, StoneCo also recorded a provision related to selected card issuers in distress after a large financial group’s credit-card-issuer subsidiary was liquidated. Salgado said more than 90 days had passed since StoneCo last received cash flows from the issuer, prompting the company to treat the exposure as distressed for accounting purposes.

Management said it expects card networks to ultimately settle the amounts and noted that it has historically collected 100% of such receivables from networks when issuers have failed. Still, Salgado said StoneCo may need to record additional provisions because the current balance reflects weighted-probability scenarios that include the possibility of litigation.

About StoneCo (NASDAQ:STNE)StoneCo Ltd., commonly known as Stone, is a Brazilian financial technology company that provides integrated digital payment solutions and related financial services to merchants. Through its cloud-based platform, Stone enables businesses of all sizes to accept a variety of payment methods, including point-of-sale (POS) terminals, mobile card readers and e-commerce gateways. In addition to payment acceptance, the company offers value-added services such as working capital loans, digital banking products and automated billing tools designed to help merchants manage cash flow and streamline operations.

Since its founding in 2012 by André Street and Eduardo Pontes, Stone has focused on serving over half a million merchants across Brazil's retail, restaurant and services sectors.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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StoneCo Ltd. (STNE - Free Report) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +2.17%. A quarter ago, it was expected that this company would post earnings of $0.42 per share when it actually produced earnings of $0.42, delivering no surprise.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

StoneCo, which belongs to the Zacks Internet - Software industry, posted revenues of $709.88 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.91%. This compares to year-ago revenues of $672.06 million. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

StoneCo shares have lost about 32.4% since the beginning of the year versus the S&P 500's gain of 13.2%.

What's Next for StoneCo?While StoneCo has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for StoneCo was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.50 on $741.11 million in revenues for the coming quarter and $2.27 on $2.91 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Workday (WDAY - Free Report) , another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on August 27.

This maker of human resources software is expected to post quarterly earnings of $2.63 per share in its upcoming report, which represents a year-over-year change of +19%. The consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level.

Workday's revenues are expected to be $2.63 billion, up 12.2% from the year-ago quarter.

Posted by Defense World Staff on Aug 12th, 2026

Assenagon Asset Management S.A. increased its position in StoneCo Ltd. (NASDAQ:STNE – Free Report) by 1,288.4% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 577,959 shares of the company’s stock after acquiring an additional 536,331 shares during the period. Assenagon Asset Management S.A. owned about 0.23% of StoneCo worth $6,265,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of the company. BRC Global BAH Investments Ltd. purchased a new position in shares of StoneCo in the fourth quarter worth approximately $84,501,000. Pictet Asset Management Holding SA increased its holdings in StoneCo by 131.5% during the fourth quarter. Pictet Asset Management Holding SA now owns 219,614 shares of the company’s stock valued at $3,248,000 after buying an additional 124,734 shares during the last quarter. Coronation Fund Managers Ltd. increased its holdings in StoneCo by 71.7% during the fourth quarter. Coronation Fund Managers Ltd. now owns 2,499,733 shares of the company’s stock valued at $36,971,000 after buying an additional 1,043,464 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank bought a new position in StoneCo in the fourth quarter worth approximately $3,546,000. Finally, Robeco Institutional Asset Management B.V. raised its position in StoneCo by 25.3% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 2,515,851 shares of the company’s stock worth $37,209,000 after acquiring an additional 507,431 shares during the period. Hedge funds and other institutional investors own 73.19% of the company’s stock.

StoneCo Stock Performance Shares of NASDAQ STNE opened at $9.96 on Wednesday. The stock has a market cap of $2.48 billion, a PE ratio of 3.98, a price-to-earnings-growth ratio of 0.30 and a beta of 1.74. StoneCo Ltd. has a 1 year low of $9.45 and a 1 year high of $19.95. The firm has a fifty day moving average price of $10.93 and a 200-day moving average price of $12.97. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.33 and a quick ratio of 1.33.

StoneCo (NASDAQ:STNE – Get Free Report) last released its earnings results on Wednesday, May 13th. The company reported $0.42 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.42. The company had revenue of $141.16 million for the quarter, compared to analysts’ expectations of $675.11 million. StoneCo had a net margin of 23.82% and a return on equity of 21.05%. Equities analysts anticipate that StoneCo Ltd. will post 2.27 earnings per share for the current fiscal year.

Insider Buying and Selling at StoneCo In other news, Director Silvio Jose Morais sold 9,000 shares of the company’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $11.29, for a total value of $101,610.00. Following the completion of the transaction, the director owned 21,000 shares of the company’s stock, valued at $237,090. This represents a 30.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink.

Wall Street Analysts Forecast Growth STNE has been the subject of a number of recent research reports. Weiss Ratings downgraded shares of StoneCo from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, June 18th. Jefferies Financial Group began coverage on StoneCo in a research report on Thursday, July 23rd. They set a “hold” rating and a $12.60 target price on the stock. Citigroup lowered StoneCo from a “buy” rating to a “neutral” rating and cut their price target for the company from $18.00 to $11.00 in a report on Friday, May 15th. BTIG Research reduced their price target on StoneCo from $22.00 to $15.00 and set a “buy” rating for the company in a research report on Friday, May 15th. Finally, UBS Group decreased their price objective on StoneCo from $17.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday, July 17th. Four research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $14.59.

Read Our Latest Research Report on STNE

About StoneCo (Free Report)

StoneCo Ltd., commonly known as Stone, is a Brazilian financial technology company that provides integrated digital payment solutions and related financial services to merchants. Through its cloud-based platform, Stone enables businesses of all sizes to accept a variety of payment methods, including point-of-sale (POS) terminals, mobile card readers and e-commerce gateways. In addition to payment acceptance, the company offers value-added services such as working capital loans, digital banking products and automated billing tools designed to help merchants manage cash flow and streamline operations.

Since its founding in 2012 by André Street and Eduardo Pontes, Stone has focused on serving over half a million merchants across Brazil’s retail, restaurant and services sectors.

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Wall Street expects a year-over-year increase in earnings on higher revenues when StoneCo Ltd. (STNE - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 13. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.46 per share in its upcoming report, which represents a year-over-year change of +18%.

Revenues are expected to be $731.18 million, up 8.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for StoneCo?For StoneCo, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.35%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that StoneCo will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that StoneCo would post earnings of $0.42 per share when it actually produced earnings of $0.42, delivering no surprise.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

StoneCo doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAmong the stocks in the Zacks Internet - Software industry, Quantum Computing Inc. (QUBT - Free Report) , is soon expected to post loss of $0.05 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +16.7%. This quarter's revenue is expected to be $4.7 million, up 7733.3% from the year-ago quarter.

The consensus EPS estimate for Quantum Computing Inc. has remained unchanged over the last 30 days. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Quantum Computing Inc. will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

StoneCo Ltd. (STNE - Free Report) closed the most recent trading day at $10.92, moving -2.15% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.52%. Meanwhile, the Dow lost 2.19%, and the Nasdaq, a tech-heavy index, lost 1.74%.

Shares of the company witnessed a gain of 2.95% over the previous month, beating the performance of the Computer and Technology sector with its loss of 3.5%, and the S&P 500's gain of 1.92%.

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.

Posted by Defense World Staff on Jul 27th, 2026

California Public Employees Retirement System lessened its stake in StoneCo Ltd. (NASDAQ:STNE – Free Report) by 23.0% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 381,493 shares of the company’s stock after selling 113,854 shares during the quarter. California Public Employees Retirement System owned 0.15% of StoneCo worth $5,387,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors also recently bought and sold shares of STNE. Principal Financial Group Inc. grew its holdings in shares of StoneCo by 22.5% during the first quarter. Principal Financial Group Inc. now owns 18,182 shares of the company’s stock valued at $257,000 after buying an additional 3,340 shares during the last quarter. Hsbc Holdings PLC lifted its position in StoneCo by 286.6% in the 1st quarter. Hsbc Holdings PLC now owns 163,065 shares of the company’s stock valued at $2,298,000 after acquiring an additional 120,883 shares in the last quarter. Summit Securities Group LLC purchased a new stake in StoneCo during the 1st quarter valued at $61,000. Sumitomo Mitsui Trust Group Inc. boosted its stake in StoneCo by 3.9% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 499,409 shares of the company’s stock valued at $7,052,000 after purchasing an additional 18,525 shares during the last quarter. Finally, BRC Global BAH Investments Ltd. increased its holdings in shares of StoneCo by 32.7% in the 1st quarter. BRC Global BAH Investments Ltd. now owns 7,580,409 shares of the company’s stock worth $107,035,000 after purchasing an additional 1,867,018 shares in the last quarter. 73.19% of the stock is owned by hedge funds and other institutional investors.

StoneCo Stock Performance Shares of STNE stock opened at $10.76 on Monday. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.33 and a quick ratio of 1.33. The company has a market cap of $2.68 billion, a price-to-earnings ratio of 4.30, a PEG ratio of 0.32 and a beta of 1.73. StoneCo Ltd. has a 1 year low of $9.45 and a 1 year high of $19.95. The firm has a fifty day moving average price of $10.96 and a 200-day moving average price of $13.28.

StoneCo (NASDAQ:STNE – Get Free Report) last announced its earnings results on Wednesday, May 13th. The company reported $0.42 EPS for the quarter, hitting analysts’ consensus estimates of $0.42. StoneCo had a return on equity of 21.05% and a net margin of 23.82%.The company had revenue of $141.16 million for the quarter, compared to analysts’ expectations of $675.11 million. As a group, equities analysts predict that StoneCo Ltd. will post 2.27 earnings per share for the current year.

Insider Activity at StoneCo In other news, Director Silvio Jose Morais sold 9,000 shares of the firm’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $11.29, for a total value of $101,610.00. Following the transaction, the director owned 21,000 shares of the company’s stock, valued at $237,090. This trade represents a 30.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink.

Analysts Set New Price Targets Several equities research analysts recently commented on the company. UBS Group dropped their price objective on StoneCo from $17.00 to $15.00 and set a “buy” rating on the stock in a research report on Friday, July 17th. Weiss Ratings cut shares of StoneCo from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, June 18th. BTIG Research dropped their price target on shares of StoneCo from $22.00 to $15.00 and set a “buy” rating on the stock in a report on Friday, May 15th. JPMorgan Chase & Co. reduced their price target on shares of StoneCo from $20.00 to $16.50 and set an “overweight” rating for the company in a research note on Wednesday, May 27th. Finally, Jefferies Financial Group initiated coverage on shares of StoneCo in a report on Thursday. They set a “hold” rating and a $12.60 price objective for the company. Four equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, StoneCo has an average rating of “Hold” and a consensus target price of $14.59.

View Our Latest Stock Analysis on STNE

StoneCo Profile (Free Report)

StoneCo Ltd., commonly known as Stone, is a Brazilian financial technology company that provides integrated digital payment solutions and related financial services to merchants. Through its cloud-based platform, Stone enables businesses of all sizes to accept a variety of payment methods, including point-of-sale (POS) terminals, mobile card readers and e-commerce gateways. In addition to payment acceptance, the company offers value-added services such as working capital loans, digital banking products and automated billing tools designed to help merchants manage cash flow and streamline operations.

Since its founding in 2012 by André Street and Eduardo Pontes, Stone has focused on serving over half a million merchants across Brazil’s retail, restaurant and services sectors.

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In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $11.26, marking a +1.21% move from the previous day. This move outpaced the S&P 500's daily gain of 0.89%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq added 1.29%.

The company's shares have seen an increase of 3.54% over the last month, surpassing the Computer and Technology sector's loss of 6.6% and the S&P 500's loss of 0.63%.

The investment community will be paying close attention to the earnings performance of StoneCo Ltd. in its upcoming release. The company is slated to reveal its earnings on August 13, 2026. In that report, analysts expect StoneCo Ltd. to post earnings of $0.46 per share. This would mark year-over-year growth of 17.95%. Simultaneously, our latest consensus estimate expects the revenue to be $731.18 million, showing a 8.8% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.27 per share and a revenue of $2.91 billion, signifying shifts of +40.12% and +10.25%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.73% decrease. StoneCo Ltd. currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, StoneCo Ltd. is holding a Forward P/E ratio of 4.9. This expresses a discount compared to the average Forward P/E of 19.97 of its industry.

We can additionally observe that STNE currently boasts a PEG ratio of 0.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.1.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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.

Key Takeaways Five stocks met value screens that used low P/B, P/S, P/E and PEG metrics below industry medians.Harmony Biosciences has a projected 3-5-year EPS growth rate of 32.6% and a Value Score of A.Nexa Resources has a projected 3-5-year EPS growth rate of 34.0% and a Value Score of A. Value investors widely favor the price-to-book (P/B) ratio for identifying low-priced stocks with exceptional returns. The ratio is used to compare a stock’s market value/price to its book value.

The P/B ratio is calculated as below:

P/B ratio = market price per share/book value of equity per share

P/B ratio reflects how many times book value investors are ready to pay for a share. So, if the share price is $10 and the book value of equity is $5, investors are ready to pay two times the book value. Ideally, a P/B value under 1.0 is considered good as it indicates that the stock is potentially undervalued. However, value investors often consider stocks with a P/B value under 3.0.

This metric can help identify attractively priced stocks with upside potential. Some such stocks are Harmony Biosciences Holdings (HRMY - Free Report) , StoneCo (STNE - Free Report) , General Motors (GM - Free Report) , Hewlett Packard Enterprise (HPE - Free Report) and Nexa Resources (NEXA - Free Report) . Let us understand the concept of book value.

What is Book Value?There are several ways in which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it went bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.

It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from total assets to determine book value.

Book Value Per Share = (Total Assets – Total Liabilities) ÷ Number of Outstanding Shares

Understanding P/B RatioBy comparing the book value of equity to its market price, we get an idea of whether a company is under- or overpriced. Like P/E or P/S ratios, it is always better to compare the P/B ratio within industries.

A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.

For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.

But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated. In such a case, the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.

Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.

In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.

Screening ParametersPrice to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.

Price to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.

Price to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.

PEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued, and investors need to pay less for a stock that has bright earnings growth prospects.

Current Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.

Average 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.

Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.

Value Score equal to A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.

5 Low Price-to-Book StocksHere are five of the 13 stocks that qualified for the screening: 

Delaware-based Harmony Biosciences is a neuroscience company developing and commercializing therapies for sleep/wake disorders and rare neurological diseases.

Harmony Biosciences currently has a Value Score of A and a Zacks Rank #1. HRMY has a projected 3-5-year EPS growth rate of 32.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.

StoneCo provides financial technology solutions. The company offers an end-to-end cloud-based technology platform to conduct electronic commerce across in-store, online and mobile channels. StoneCo is based in Sao Paulo, Brazil.

STNE has a Zacks Rank #2 and a Value Score of A. STNE has a projected 3-5-year EPS growth rate of 23.6%.

Detroit, MI-based General Motors is one of the world’s largest automakers. General Motors, along with its strategic partners, produces, sells and services cars, trucks and parts under four core brands — Chevrolet, Buick, GMC and Cadillac. General Motors assembles passenger cars, crossover vehicles, light trucks, sport-utility vehicles, vans and other vehicles.

GM currently has a Zacks Rank #2 and a Value Score of A. The company has a projected 3-5-year EPS growth rate of 15.5%. 

Headquartered in Houston, TX, Hewlett Packard Enterprise is a global enterprise technology company. It provides hardware, software and services that help businesses store, process and manage data across on-premise, cloud and edge environments. The company serves enterprises, governments, telecom operators and financial institutions in more than 150 countries.

Hewlett Packard currently has a Zacks Rank #1 and a Value Score of B. The company has a projected 3-5-year EPS growth rate of 32.0% 

Luxembourg City, Brazil-based Nexa Resources is an integrated zinc producer. It is engaged in developing and operating mining and smelting assets, primarily in Latin America. NEXA currently has a Value Score of A and a Zacks Rank #2. NEXA has a projected 3-5-year EPS growth rate of 34.0%. 

StoneCo Ltd. (STNE - Free Report) ended the recent trading session at $10.52, demonstrating a -1.5% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 1.09%, and the Nasdaq, a tech-heavy index, added 0.2%.

Shares of the company have appreciated by 0.19% over the course of the past month, outperforming the Computer and Technology sector's loss of 1.22%, and lagging the S&P 500's gain of 1.64%.

The investment community will be paying close attention to the earnings performance of StoneCo Ltd. in its upcoming release. It is anticipated that the company will report an EPS of $0.47, marking a 20.51% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $731.18 million, up 8.8% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.31 per share and revenue of $2.91 billion, which would represent changes of +42.59% and +10.25%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for StoneCo Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. StoneCo Ltd. presently features a Zacks Rank of #2 (Buy).

Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 4.62. This expresses a discount compared to the average Forward P/E of 19.93 of its industry.

We can additionally observe that STNE currently boasts a PEG ratio of 0.2. 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 Internet - Software industry had an average PEG ratio of 1.1 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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.

Key Takeaways Lower crude prices eased inflation worries, lifting the appeal of value stocks with stable cash flows.Nexa Resources, Avnet, StoneCo and USANA Health qualified for the screen on low P/CF and value metrics.Projected sales and EPS growth support the case for all four stocks, despite mixed one-year share moves. U.S. equity markets ended on a mixed note yesterday. The Nasdaq Composite Index declined 0.43% to close at 25,476.64, while the S&P 500 edged 0.10% lower to 7,358.22. In contrast, the Dow Jones Industrial Average outperformed, rising 182.06 points, or 0.35%, to finish at 51,848.90.

Market sentiment improved as crude oil prices fell sharply, easing concerns over supply disruptions amid expectations that shipping through the Strait of Hormuz would normalize. The decline in oil also helped ease inflation worries, providing support to broader equity markets.

Against this backdrop, value stocks could become increasingly attractive for long-term investors. Companies with stable cash flows, disciplined cost structures and reasonable valuations are generally better positioned to benefit from improving sentiment and easing macroeconomic pressures.

When evaluating value stocks, one of the most effective valuation metrics is the Price to Cash Flow (P/CF) ratio. This metric measures the market price of a stock relative to the cash flow the company generates on a per-share basis. A lower P/CF ratio indicates that the stock is trading at a better value, offering strong cash generation potential relative to its price. Here are four companies — Nexa Resources S.A. (NEXA - Free Report) , Avnet, Inc. (AVT - Free Report) , StoneCo Ltd. (STNE - Free Report) and USANA Health Sciences, Inc. (USNA - Free Report) — that boast a low P/CF ratio.

Price to Cash Flow Reveals Financial HealthQuestions may arise as to why we are considering the P/CF valuation metric when the most widely used metric is Price/Earnings (or P/E). Well, what makes P/CF stand out is that operating cash flow adds back non-cash charges such as depreciation and amortization to net income, reflecting a company's financial health.

Analysts caution that a company’s earnings are subject to accounting estimates and management manipulation. However, cash flow is reliable. It is net cash flow that reveals how much money a company is actually generating and how effectively management is putting the same to use.

A positive cash flow indicates an increase in the company’s liquid assets. This gives the company the means to settle debt, shell out for its expenses, reinvest in its business, endure downturns and finally pay back its shareholders. Then again, a negative cash flow implies a decline in the company’s liquidity, which lowers its flexibility to support these moves.

What’s the Best Value Investing Strategy?An investment decision solely based on the P/CF metric may not fetch the desired results. To identify stocks that are trading at a discount, you should expand your search criteria and also consider the price-to-book ratio, price-to-earnings ratio and price-to-sales ratio. Adding a favorable Zacks Rank and a Value Score of A or B to your search criteria should lead to even better results as these eliminate the chance of falling into a value trap.

Here are the parameters for selecting true-value stocks:

P/CF less than or equal to X-Industry Median.

Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher.

Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable.

P/E using (F1) less than or equal to X-Industry Median: This parameter shortlists stocks that are trading at a discount or are equal to their peers.

P/B less than or equal to X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.

P/S less than or equal to X-Industry Median: The P/S ratio determines how a stock price compares to the company’s sales — the lower the ratio, the more attractive the stock is.

PEG less than 1: The ratio is used to determine a stock's value by taking the company's earnings growth into account. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued and that investors need to pay less for a stock that has robust earnings growth prospects.

Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.

Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.

Here are four of the 15 value stocks that qualified the screening:

Nexa Resources, a large-scale, low-cost, integrated polymetallic producer, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 59.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Nexa Resources’ current financial-year sales and EPS implies growth of 14.6% and 230.6%, respectively, from the year-ago period. NEXA has a Value Score of A. Shares of NEXA have soared 158.1% over the past year.

Avnet, a leading global technology distributor and solutions provider, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 9.5%, on average.

The Zacks Consensus Estimate for Avnet’s current financial-year sales and EPS indicates growth of 20.7% and 48.8%, respectively, from the year-ago period. AVT has a Value Score of B. Shares of AVT have surged 67.4% over the past year.

Stone, a leading provider of financial technology solutions, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 3.1%, on average.

The Zacks Consensus Estimate for Stone’s current financial-year sales and EPS indicates growth of 10.3% and 42.6%, respectively, from the year-ago period. STNE has a Value Score of A. Shares of STNE have fallen 27.7% over the past year.

USANA Health, which develops and manufactures high-quality nutritional supplements, functional foods and personal care products, carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 30.5%, on average.

The Zacks Consensus Estimate for USANA Health’s current financial-year sales and EPS calls for growth of 2.1% and 9.8%, respectively, from the year-ago period. USNA has a Value Score of A. Shares of USNA have declined 35.5% over the past year.

In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $10.75, marking a +1.51% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.37%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 1.33%.

Shares of the company have depreciated by 3.73% over the course of the past month, underperforming the Computer and Technology sector's gain of 4.52%, and the S&P 500's gain of 2.02%.

Investors will be eagerly watching for the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.47, showcasing a 20.51% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $731.18 million, reflecting a 8.8% rise from the equivalent quarter last year.

STNE's full-year Zacks Consensus Estimates are calling for earnings of $2.31 per share and revenue of $2.91 billion. These results would represent year-over-year changes of +42.59% and +10.25%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for StoneCo Ltd. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 16.08% increase. StoneCo Ltd. is currently sporting a Zacks Rank of #2 (Buy).

Looking at valuation, StoneCo Ltd. is presently trading at a Forward P/E ratio of 4.58. Its industry sports an average Forward P/E of 18.33, so one might conclude that StoneCo Ltd. is trading at a discount comparatively.

It's also important to note that STNE currently trades at a PEG ratio of 0.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 0.99 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 35% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is StoneCo (STNE - Free Report) . STNE is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.19, while its industry has an average P/E of 25.65. STNE's Forward P/E has been as high as 11.19 and as low as 6.09, with a median of 8.65, all within the past year.

Investors should also note that STNE holds a PEG ratio of 0.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. STNE's industry has an average PEG of 0.92 right now. Within the past year, STNE's PEG has been as high as 0.45 and as low as 0.28, with a median of 0.35.

Investors should also recognize that STNE has a P/B ratio of 2.71. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.34. Within the past 52 weeks, STNE's P/B has been as high as 2.71 and as low as 0.88, with a median of 1.45.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. STNE has a P/S ratio of 1.04. This compares to its industry's average P/S of 2.72.

These are only a few of the key metrics included in StoneCo's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, STNE looks like an impressive value stock at the moment.

In the latest close session, StoneCo Ltd. (STNE - Free Report) was down 1.15% at $14.61. The stock trailed the S&P 500, which registered a daily gain of 1.18%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq gained 1.96%.

Prior to today's trading, shares of the company had gained 5.5% outpaced the Computer and Technology sector's gain of 5.37% and the S&P 500's gain of 3.93%.

Investors will be eagerly watching for the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 14, 2026. In that report, analysts expect StoneCo Ltd. to post earnings of $0.44 per share. This would mark year-over-year growth of 29.41%. Alongside, our most recent consensus estimate is anticipating revenue of $690.25 million, indicating a 10.29% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.92 per share and a revenue of $2.72 billion, representing changes of +18.52% and +3.06%, respectively, from the prior year.

Any recent changes to analyst estimates for StoneCo Ltd. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 8.13% downward. At present, StoneCo Ltd. boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, StoneCo Ltd. is holding a Forward P/E ratio of 7.7. This represents a discount compared to its industry average Forward P/E of 18.17.

It is also worth noting that STNE currently has a PEG ratio of 0.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 1.01 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

George Town, Grand Cayman--(Newsfile Corp. - April 23, 2026) - StoneCo Ltd. (NASDAQ: STNE) ("Stone" or "the Company") hereby informs its shareholders and the market that has filed today, April 23, its Annual Report on Form 20-F for the fiscal year ended December 31, 2025, with the U.S. Securities and Exchange Commission (the "SEC").

The report is available on the SEC's website, at www.sec.gov, and on StoneCo's Investor Relations website, at https://investors.stone.co.

About StoneCo

Stone Co. is a leading provider of financial technology solutions that empower merchants to conduct commerce seamlessly across multiple channels and help them grow their businesses with our payments, banking, and credit solutions.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. These statements identify prospective information and may include words such as "believe," "may," "will," "aim," "estimate," "continue," "anticipate," "intend," "expect," "forecast," "plan," "predict," "project," "potential," "aspiration," "objectives," "should," "purpose," "belief," and similar, or variations of, or the negative of such words and expressions, although not all forward-looking statements contain these identifying words.

Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Stone's control.

Stone's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: more intense competition than expected, lower addition of new clients, regulatory measures, more investments in our business than expected, and our inability to execute successfully upon our strategic initiatives, among other factors.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/294068

Source: StoneCo Ltd.

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