BOX (NYSE:BOX – Get Free Report) and StoneCo (NASDAQ:STNE – Get Free Report) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.
Profitability This table compares BOX and StoneCo’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets BOX 10.35% -24.19% 4.66% StoneCo 23.82% 21.05% 4.17% Institutional and Insider Ownership 86.7% of BOX shares are owned by institutional investors. Comparatively, 73.2% of StoneCo shares are owned by institutional investors. 4.0% of BOX shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk BOX has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, StoneCo has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500.
Valuation and Earnings This table compares BOX and StoneCo”s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio BOX $1.18 billion 3.53 $115.38 million $0.65 46.16 StoneCo $13.62 billion 0.21 $425.73 million $2.50 4.50 StoneCo has higher revenue and earnings than BOX. StoneCo is trading at a lower price-to-earnings ratio than BOX, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings This is a breakdown of current ratings and recommmendations for BOX and StoneCo, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score BOX 1 5 3 0 2.22 StoneCo 0 5 4 0 2.44 BOX currently has a consensus price target of $35.33, suggesting a potential upside of 17.77%. StoneCo has a consensus price target of $14.92, suggesting a potential upside of 32.47%. Given StoneCo’s stronger consensus rating and higher probable upside, analysts clearly believe StoneCo is more favorable than BOX.
Summary StoneCo beats BOX on 9 of the 14 factors compared between the two stocks.
About BOX (Get Free Report)
Box, Inc. engages in the provision of an enterprise content platform that enables organizations to securely manage enterprise content while allowing easy, secure access and sharing of this content from anywhere, on any device. Its products include cloud content management, IT and admin controls, Box Governance, Box Zones, Box Relay, Box Shuttle, and Box KeySafe. The company was founded by Aaron Levie, Dylan Smith, Jeff Queisser, and Sam Ghods in March 2005 and is headquartered in Redwood City, CA.
About StoneCo (Get Free Report)
StoneCo Ltd. provides financial technology and software solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. It distributes its solutions, principally through proprietary Stone Hubs, which offer hyper-local sales and services; and sells solutions to brick-and-mortar and digital merchants through sales team. The company served small-and-medium-sized businesses; and marketplaces, e-commerce platforms, and integrated software vendors. StoneCo Ltd. was founded in 2000 and is headquartered in George Town, the Cayman Islands.
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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.
In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $11.30, marking a +1.35% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.38%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.9%.
The company's shares have seen an increase of 1.46% over the last month, surpassing the Computer and Technology sector's loss of 1.5% and the S&P 500's gain of 1.27%.
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. The company's earnings per share (EPS) are projected to be $0.47, reflecting a 20.51% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $731.18 million, indicating a 8.8% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.31 per share and a revenue of $2.91 billion, signifying shifts of +42.59% and +10.25%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. StoneCo Ltd. is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that StoneCo Ltd. has a Forward P/E ratio of 4.83 right now. Its industry sports an average Forward P/E of 20.06, 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 0.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.08.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
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%.
George Town, Grand Cayman--(Newsfile Corp. - July 10, 2026) - StoneCo Ltd. (NASDAQ: STNE) ("Stone") today announces that it will release its second quarter 2026 financial results on Thursday, August 13th, 2026, after the market closes. The Company will also host a conference call to discuss its results on the same day at 5:00pm ET (6:00pm BRT).
The conference call can be accessed live over the Zoom webinar (ID: 811 1885 5067 | Password: 785025). You can also access the meeting over the phone by dialing +1 646 931 3860 or +1 669 444 9171 from the U.S. Callers from Brazil can dial +55 21 3958 7888. Callers from the UK can dial +44 330 088 5830. The call will also be webcast live and a replay will be available a few hours after the call concludes. The live webcast and replay will be available on Stone's investor relations website at https://investors.stone.co/.
The Company also hereby informs that it will initiate its Quiet Period related to its second quarter 2026 financial results on July 27th, 2026.
About Stone
Stone 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 payments, banking and credit.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304724
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.
StoneCo Ltd. (STNE - Free Report) closed at $10.99 in the latest trading session, marking a +1.38% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.22%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.66%.
Shares of the company witnessed a loss of 3.56% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 2.58%, and the S&P 500's loss of 1.21%.
Analysts and investors alike will be keeping a close eye on the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.47, reflecting a 20.51% increase from the same quarter last 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.31 per share and revenue of $2.91 billion. These totals would mark changes of +42.59% and +10.25%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for StoneCo Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, StoneCo Ltd. holds a Zacks Rank of #2 (Buy).
Looking at its valuation, StoneCo Ltd. is holding a Forward P/E ratio of 4.69. This indicates a discount in contrast to its industry's Forward P/E of 19.05.
It is also worth noting that STNE currently has a PEG ratio of 0.2. 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. STNE's industry had an average PEG ratio of 1.06 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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.
Key Takeaways Dow, Hewlett Packard, StoneCo and Intercorp qualified a PEG-based value stock screen.DOW, HPE, STNE and IFS met valuation, size, liquidity and earnings estimate screening criteria.Hewlett Packard, StoneCo and Intercorp were highlighted alongside Dow for expected long-term growth. At a time when volatility strikes every second day, investors often rely on value investing rather than other options like growth or momentum. As soon as other investors start selling their stocks at a cheaper rate in times of market uncertainty, value investors take this as an opportunity to pick good stocks at a discounted price.
Several stocks that have surged significantly in the recent past have shown the overwhelming success of this pure-play investment strategy. Here, we discuss four such stocks — Dow Inc. (DOW - Free Report) , Hewlett Packard (HPE - Free Report) , StoneCo (STNE - Free Report) and Intercorp Financial Services (IFS - Free Report) .
However, this apparently simple value investment technique has some drawbacks and not understanding the strategy properly may often lead to “value traps.” In such a situation, these value picks start to underperform over the long run as the temporary problems, which once drove the share price down, turn out to be persistent.
There are many value investment yardsticks, such as dividend yield, P/E or P/B, which are simple and can single out whether a stock is trading at a discount.
However, for investors looking to escape such value traps, it is also vital to determine where the stock would be headed in the next 12 to 24 months. Warren Buffett advises these investors to focus on the earnings growth potential of a stock. This is where lies the importance of a not-so-popular value investing metric, the PEG ratio.
PEG Ratio at a GlanceThe PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
A low PEG ratio is always better for value investors.
While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock.
There are some drawbacks to using the PEG ratio. It doesn’t consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration.
Here are some of the screening criteria for a winning strategy:
PEG Ratio less than X Industry Median
P/E Ratio (using F1) less than X Industry Median (for more accurate valuation purposes)
Zacks Rank #1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or 2 have a proven history of success.)
Market Capitalization greater than $1 billion (This helps us to focus on companies that have strong liquidity.)
Average 20-Day Volume greater than 50,000 (A substantial trading volume ensures that the stock is easily tradable.)
Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5% (Upward estimate revisions add to the optimism, suggesting further bullishness.)
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, 2 or 3 (Hold) offer the best upside potential.
Our PEG-Driven PicksHere are four stocks that qualified the screening:
Dow: This is a material science company, providing a world-class portfolio of advanced, sustainable and leading-edge products. Dow offers a vast range of differentiated products and solutions across high-growth market segments such as packaging, infrastructure and consumer care. Its ethylene plant in Freeport, TX, having a total capacity of 2,000 kilotons per year, is the largest ethylene cracker on the planet.
DOW currently has a Zacks Rank #1 and a Value Score of B. Dow also has an impressive five-year expected growth rate of 56%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hewlett Packard: Headquartered in Spring, TX, Hewlett Packard Enterprise Company reports financial results under five segments: Server, Hybrid Cloud, Networking, Financial Services and Corporate Investments and Other. At present, HPE is executing well on its mix shift toward higher-value networking, cloud and AI, supported by the completed Juniper acquisition, integration running ahead of plan and Catalyst cost synergies.
Hewlett Packard currently has a Zacks Rank #1 and a Value Score of B. HPE also has an impressive five-year expected growth rate of 32%.
StoneCo: The company provides financial technology and software solutions for merchants and partners across Brazil. Its offerings include electronic payments, digital banking, credit, Pix transactions, subscription billing and Tap to Phone solutions for in-store, online and mobile commerce.
Apart from a discounted PEG and P/E, StoneCo currently has a Zacks Rank #2 and a Value Score of A. STNE has a long-term expected growth rate of 23.6%.
Intercorp: The company provides banking, insurance, wealth management and payment solutions for retail and commercial clients in Peru. Intercorp’s services include loans, deposits, insurance, investment management, card processing, digital payments and electronic commerce infrastructure.
Intercorp has a Zacks Rank #1 and a Value Score of B. IFS also has an impressive five-year expected growth rate of 12.1%.
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.
In the latest close session, StoneCo Ltd. (STNE - Free Report) was down 2.4% at $10.99. The stock's change was less than the S&P 500's daily gain of 1.65%. Elsewhere, the Dow saw an upswing of 0.92%, while the tech-heavy Nasdaq appreciated by 3.07%.
Shares of the company witnessed a gain of 17.17% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.33%, and the S&P 500's gain of 0.48%.
The upcoming earnings release of StoneCo Ltd. will be of great interest to investors. 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, 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 $2.31 per share and a revenue of $2.91 billion, demonstrating changes of +42.59% and +10.25%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for StoneCo Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 16.08% upward. Currently, StoneCo Ltd. is carrying a Zacks Rank of #2 (Buy).
In the context of valuation, StoneCo Ltd. is at present trading with a Forward P/E ratio of 4.87. This represents a discount compared to its industry average Forward P/E of 18.42.
It is also worth noting that STNE currently has a PEG ratio of 0.21. 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 was holding an average PEG ratio of 1.03 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 80, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
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.
Shares of StoneCo Ltd. (STNE - Free Report) have gained 17.2% over the past four weeks to close the last trading session at $11.26, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $14.99 indicates a potential upside of 33.1%.
The average comprises nine short-term price targets ranging from a low of $9.00 to a high of $23.00, with a standard deviation of $4.4. While the lowest estimate indicates a decline of 20.1% from the current price level, the most optimistic estimate points to a 104.3% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for STNE, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why STNE Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 16.1% over the past month, as one estimate has gone higher compared to no negative revision.
Moreover, STNE currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much STNE could gain, the direction of price movement it implies does appear to be a good guide.
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.
StoneCo Ltd. (STNE - Free Report) closed the most recent trading day at $15.40, moving +1.99% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.24% for the day. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw a decrease of 0.26%.
Shares of the company have appreciated by 13.11% over the course of the past month, outperforming the Computer and Technology sector's gain of 9.41%, and the S&P 500's gain of 6.42%.
The upcoming earnings release of StoneCo Ltd. will be of great interest to investors. The company's earnings report is expected on May 14, 2026. The company's earnings per share (EPS) are projected to be $0.42, reflecting a 23.53% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $708.45 million, indicating a 13.2% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.99 per share and revenue of $2.82 billion, which would represent changes of +22.84% and +6.67%, respectively, from the prior 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 such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there's been a 4.78% fall in the Zacks Consensus EPS estimate. StoneCo Ltd. is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that StoneCo Ltd. has a Forward P/E ratio of 7.59 right now. This valuation marks a discount compared to its industry average Forward P/E of 19.18.
Meanwhile, STNE's PEG ratio is currently 0.32. 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. The average PEG ratio for the Internet - Software industry stood at 1.1 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
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.
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
In the latest trading session, StoneCo Ltd. (STNE - Free Report) closed at $11.99, marking a -1.88% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.12%. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.2%.
Shares of the company have depreciated by 9.21% over the course of the past month, underperforming the Computer and Technology sector's gain of 16.05%, and the S&P 500's gain of 9.3%.
Analysts and investors alike will be keeping a close eye on the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company's earnings report is set to go public on May 14, 2026. The company is forecasted to report an EPS of $0.42, showcasing a 23.53% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $708.45 million, indicating a 13.2% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.99 per share and revenue of $2.82 billion. These totals would mark changes of +22.84% and +6.67%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for StoneCo Ltd. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 3.86% lower. At present, StoneCo Ltd. boasts a Zacks Rank of #3 (Hold).
In terms of valuation, StoneCo Ltd. is presently being traded at a Forward P/E ratio of 6.14. This signifies a discount in comparison to the average Forward P/E of 18.77 for its industry.
Meanwhile, STNE's PEG ratio is currently 0.26. 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 average PEG ratio for the Internet - Software industry stood at 1.09 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 36% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
On April 29, 2026, StoneCo Ltd STNE shares experienced a significant decline, falling 7.0% to a current price of $10.85. This decline is part of a broader trend, with the stock down 11.2% year-to-date and 6.7% over the past year. The stock has traded within a 52-week range of $10.83 to $19.95.
GF Value™ verdict: Current price of $10.85 is 44.0% below the GF Value™ estimate of $19.36.GF Score™ of 73/100 indicates the stock is rated as Above Average.Most notable signal: Insider activity shows that insiders sold $0.1M in the last 3 months with no buying activity. Is STNE Overvalued or Undervalued? The current price of StoneCo Ltd at $10.85 is significantly below the GF Value™ estimate of $19.36, suggesting that the stock is undervalued by approximately 44.0%. This margin of safety implies a potential upside for investors who believe that the market has mispriced the stock. However, it is essential to note that the GF Valuation label indicates a "Possible Value Trap," which suggests caution. A value trap occurs when a stock is deemed cheap based on traditional metrics but may not deliver returns due to underlying issues.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the undervaluation presents an opportunity, potential investors should consider the company's financial strength and profitability rankings, which also impact the risk profile.
How Does STNE's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 6.3x 16.0x (5-Year Median) Forward P/E 5.1x N/A StoneCo's current P/E (TTM) of 6.3x is significantly below its 5-year median P/E of 16.0x, indicating that the stock is trading at a substantial discount relative to its historical valuation. This analysis agrees with the GF Value™ verdict, reinforcing the notion that the stock may be undervalued. However, the stark difference between the current and historical P/E suggests that investors should remain cautious, as the low valuation could be a reflection of deeper issues within the company.
What Does STNE's GF Score™ Tell Us? Metric Rating GF Score™ 73/100 Financial Strength 4/10 Profitability 8/10 Growth 4/10 Valuation 4/10 Momentum 5/10 The GF Score™ of 73/100 indicates that StoneCo Ltd is rated as Above Average, reflecting a mix of strengths and weaknesses. Notably, the company scores well in profitability with an 8/10, suggesting strong profit margins compared to peers. However, its financial strength and growth ranks are much weaker at 4/10, indicating potential vulnerabilities that investors should consider. The lower valuation score further emphasizes the need for caution despite the attractive profitability metrics.
What Are Insiders Doing with STNE Stock? Insider activity in StoneCo Ltd has shown some concern, as insiders sold $0.1 million worth of shares in the past three months without any purchasing activity. This pattern raises potential red flags regarding the confidence insiders have in the company's future prospects. Insider selling can often indicate that those closest to the company may not be optimistic about its short-term performance, warranting closer scrutiny from potential investors.
What This Means for Investors Based on the analysis of GF Value™, StoneCo Ltd STNE appears to be undervalued at its current price of $10.85. However, potential investors should approach with caution due to the warning of a possible value trap and the mixed signals from insider activity. An understanding of the company's financial health, profitability, and growth metrics is essential before making any investment decision.
For the complete analysis, visit the StoneCo Ltd STNE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is STNE's GF Score™?
STNE has a GF Score™ of 73/100, indicating that it is rated as Above Average, which suggests a potential for higher long-term returns compared to lower-rated stocks.
Is STNE overvalued or undervalued?
STNE is currently undervalued, with a GF Value™ estimate of $19.36 compared to its current price of $10.85, representing a 44.0% discount.
What is STNE's P/E ratio?
STNE's P/E (TTM) is 6.3x, significantly below its 5-year median P/E of 16.0x, suggesting that the stock is trading at a considerable 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].
StoneCo Ltd. (STNE - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this company have returned -24.4%, compared to the Zacks S&P 500 composite's +12.2% change. During this period, the Zacks Internet - Software industry, which StoneCo falls in, has gained 16.5%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, StoneCo is expected to post earnings of $0.42 per share, indicating a change of +23.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +3.3% over the last 30 days.
The consensus earnings estimate of $1.99 for the current fiscal year indicates a year-over-year change of +22.8%. This estimate has changed +3.7% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.32 indicates a change of +16.4% from what StoneCo is expected to report a year ago. Over the past month, the estimate has changed +8.9%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for StoneCo.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of StoneCo, the consensus sales estimate of $708.45 million for the current quarter points to a year-over-year change of +13.2%. The $2.82 billion and $2.86 billion estimates for the current and next fiscal years indicate changes of +6.7% and +1.5%, respectively.
Last Reported Results and Surprise HistoryStoneCo reported revenues of $689.78 million in the last reported quarter, representing a year-over-year change of +11.7%. EPS of $0.5 for the same period compares with $0.39 a year ago.
Compared to the Zacks Consensus Estimate of $717.92 million, the reported revenues represent a surprise of -3.92%. The EPS surprise was +4.17%.
Over the last four quarters, StoneCo surpassed consensus EPS estimates three times. The company topped consensus revenue estimates just once over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
StoneCo is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about StoneCo. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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 March 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 earnings report, which is expected to be released on May 14, might help the stock move higher if these key numbers are better than expectations. 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 $0.42 per share in its upcoming report, which represents a year-over-year change of +23.5%.
Revenues are expected to be $708.45 million, up 13.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 3.33% higher over the last 30 days to the current level. 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. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
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 higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.94%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that StoneCo will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. 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 $0.48 per share when it actually produced earnings of $0.50, delivering a surprise of +4.17%.
Over the last four quarters, the company has beaten consensus EPS estimates three 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 appears 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.
Expected Results of an Industry PlayerAnother stock from the Zacks Internet - Software industry, AudioEye (AEYE - Free Report) , is soon expected to post earnings of $0.17 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of +13.3%. Revenues for the quarter are expected to be $10.54 million, up 8.3% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for AudioEye has remained unchanged. Nevertheless, the company now has an Earnings ESP of +9.62%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that AudioEye will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
George Town, Grand Cayman--(Newsfile Corp. - May 14, 2026) - StoneCo Ltd. (NASDAQ: STNE) ("Stone" or the "Company") today reported its financial results for the first quarter ended March 31, 2026, in a Earnings Release wich is now posted to the company's Investor Relations website https://investors.stone.co/.
Conference Call
Stone will discuss its 1Q26 results during a teleconference today, May 14, 2026, at 5:00 PM ET/6:00 PM BRT.
The conference call can be accessed live over the Zoom webinar (ID: 811 4841 9160 | Password: 164760).
You can also access the meeting over the phone by dialing +1 646 931 3860 or +1 669 444 9171 from the U.S. Callers from Brazil can dial +55 21 3958 7888. Callers from the UK can dial +44 330 088 5830. The call will also be webcast live and a replay will be available a few hours after the call concludes. The live webcast and replay will be available on Stone's investor relations website at https://investors.stone.co/.
About Stone Co.
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 payments, banking and credit.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/297506
StoneCo Ltd. (STNE - Free Report) came out with quarterly earnings of $0.42 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -0.78%. A quarter ago, it was expected that this company would post earnings of $0.48 per share when it actually produced earnings of $0.5, delivering a surprise of +4.17%.
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 $679.39 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 4.1%. This compares to year-ago revenues of $625.86 million. The company has topped consensus revenue estimates just once 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 34.5% since the beginning of the year versus the S&P 500's gain of 8.8%.
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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $0.47 on $709.58 million in revenues for the coming quarter and $1.99 on $2.82 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 33% 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.
ServiceTitan Inc. (TTAN - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 4.
This company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of +50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
ServiceTitan Inc.'s revenues are expected to be $256.3 million, up 18.8% from the year-ago quarter.
2 Digital Payment Platforms That Are Crushing PayPal and SquareStoneCo NASDAQ: STNE reported first-quarter 2026 results that management described as broadly in line with expectations for a softer first half, as the Brazilian financial technology company worked through elevated merchant churn, weaker small-business conditions and higher credit provisions.
Chief Executive Officer Mateus Scherer said three factors shaped the quarter: a macro environment weighing on smaller merchants, typical first-quarter seasonality and a credit portfolio that continued to grow profitably despite nonperforming loans coming in above the company’s expectations. Scherer said StoneCo is focused on improving retention, re-accelerating total payment volume, or TPV, and maintaining disciplined capital allocation.
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StoneCo Stock May be Basing Like a Rock “The quarter was broadly consistent with the softer first half dynamics we had anticipated,” Scherer said. He added that the period marked “the beginning of a transition phase” between capital distributions tied to the Linx divestiture and the operational momentum management expects to build in the second half of the year.
Revenue rises, EPS benefits from buybacks Chief Financial Officer Diego Salgado said total revenue and income reached BRL 3.6 billion in the quarter, up 6% from a year earlier. He attributed the increase primarily to continued expansion in credit revenues and healthy profitability in payments, partly offset by lower floating revenues from deposits.
StoneCo Ltd. Stock is in Turnaround Adjusted gross profit was BRL 1.5 billion, broadly stable year over year, as revenue growth was offset mainly by higher credit-loss provisions and increased operating costs. Gross profit margin fell to 41.6% from 44.4% in the first quarter of 2025.
Adjusted net income rose 3% year over year to BRL 549 million, while adjusted basic earnings per share increased 15% to BRL 2.19. Salgado said EPS outperformed net income because of StoneCo’s ongoing share repurchase program.
The company said it has distributed BRL 3.6 billion to shareholders year to date, representing a 27% distribution yield. That total includes an extraordinary dividend paid May 4 using proceeds from the Linx divestiture and about BRL 600 million in ordinary share buybacks. Scherer said StoneCo still expects to repurchase at least another BRL 1.4 billion in shares this year.
TPV growth remains soft as churn weighs on payments StoneCo reported TPV of BRL 137 billion in the quarter, up 3% year over year. Salgado said growth reflected pressure from the microeconomic environment for smaller merchants, relatively stronger digital sales in areas where StoneCo has less exposure, and elevated churn identified in the prior quarter.
Scherer said the churn pressure is not broad-based. The company’s legacy customer base continues to perform in line with historical churn levels, he said, while the pressure has been more concentrated among clients onboarded during 2025. During that period, StoneCo expanded its product offering to include areas such as instant settlement, investments and credit cards, but Scherer said bundles and pricing became too complex.
“That created friction for some clients, and we are addressing it directly,” Scherer said. He said StoneCo is reviewing its offerings, simplifying bundles and moving toward a cleaner and more transparent pricing structure.
Management said early volume indicators have improved, with TPV growth showing improvement in April, though Scherer cautioned it is too early to call a definitive trend. In response to analyst questions, he said the company is adjusting sales-force incentives to better align origination with client retention and long-term value creation.
New client metrics introduced StoneCo also changed how it reports active clients, consolidating prior payment and banking disclosures into a single metric: merchants that generated revenue over the past 30 days across payments, banking or credit solutions.
Under that definition, total active clients were 4.7 million in the first quarter, up 13% year over year but down 5% sequentially. Salgado said the sequential decline largely reflected conscious actions to focus on more engaged and revenue-generating clients.
The company also introduced average revenue per active client, or ARPAC, which was BRL 247 per month in the quarter, down 3% sequentially and 11% from a year earlier. Scherer said the year-over-year decline was driven mainly by client mix, including the addition of clients using lower-ARPAC products such as banking-only solutions. He said clients using multiple products, including payments, banking and credit, have ARPAC “significantly higher” than the company average.
Credit portfolio grows, but provisions increase StoneCo’s total credit portfolio reached BRL 3.2 billion, up 14% sequentially. Merchant solutions, mostly working-capital offerings, totaled BRL 2.9 billion, while the credit card portfolio reached BRL 400 million. Credit revenues rose 25% sequentially to BRL 297 million, and portfolio yield increased to 3.3% from 3.1% in the fourth quarter and 2.6% a year earlier.
Credit quality weakened during the quarter. Salgado said models for micro, small and medium-sized merchants on StoneCo’s automated desk lost efficiency, with newer cohorts performing worse than historical averages. Nonperforming loans 15 to 90 days past due increased by nearly 60 basis points, while loans more than 90 days past due rose to 7% from 5.2% in the prior quarter.
StoneCo provisioned BRL 166 million for credit losses in the quarter, bringing cost of risk to 21.9%. The company maintained a coverage ratio of 229%.
Scherer said the increase in delinquencies reflected a tougher credit environment across Brazil, model underperformance beginning late in the fourth quarter and isolated cases in the dedicated desk. Management said StoneCo responded by increasing pricing, tightening risk selection, deploying new models and reducing maximum ticket sizes in the dedicated desk. The company has also started disbursing secured working-capital products.
Salgado said StoneCo expects cost of risk to decline gradually toward the mid- to high-teens over time, though some early delinquencies from the first quarter will continue to flow through the income statement in coming months.
Deposits and guidance remain in focus Retail deposits ended the quarter at BRL 10.1 billion, up 22% year over year but down 9% sequentially, which Salgado attributed to first-quarter seasonality. Average daily retail deposits grew 7% sequentially and 26% year over year.
Salgado said deposits are becoming a more important funding source. He said StoneCo has reduced its total cost of funding from 100% of CDI in early 2025 to about 87% more recently, helped by client deposits. He also described deposit growth as an important natural hedge against interest-rate fluctuations.
Management said full-year 2026 guidance remains unchanged, with performance expected to be weighted toward the second half as credit revenues compound and commercial initiatives improve retention. However, Salgado said higher interest rates are now one of the most challenging factors in the forecast, noting that StoneCo had previously assumed year-end rates of 12.5%, while the current expectation is closer to 14%.
“I think today we’re probably closer to the bottom of the guidance that we provided, but there is still a long way to go,” Salgado said.
About StoneCo NASDAQ: STNEStoneCo 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].
Should You Invest $1,000 in StoneCo Right Now?Before you consider StoneCo, you'll want to hear this.
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StoneCo is reaffirmed as a Strong Buy, with robust fundamentals and a compelling valuation despite recent macro headwinds. STNE's capital ratio reduction to 17% unlocks capital for growth and buybacks, supporting a projected 30% shareholder yield in 2026. Macroeconomic risks, especially from the Iran conflict and elevated Selic rates, may pressure near-term earnings but do not undermine long-term growth prospects.
StoneCo Ltd. (STNE - Free Report) closed the last trading session at $11.35, gaining 4.6% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $15.6 indicates a 37.4% upside potential.
The mean estimate comprises nine short-term price targets with a standard deviation of $4.83. While the lowest estimate of $9.00 indicates a 20.7% decline from the current price level, the most optimistic analyst expects the stock to surge 102.6% to reach $23.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for STNE, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why STNE Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 16.1%, as one estimate has moved higher compared to no negative revision.
Moreover, STNE currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much STNE could gain, the direction of price movement it implies does appear to be a good guide.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is StoneCo (STNE - Free Report) . STNE is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.19, while its industry has an average P/E of 27.17. Over the past 52 weeks, STNE's Forward P/E has been as high as 11.19 and as low as 6.09, with a median of 8.65.
We also note that STNE holds a PEG ratio of 0.37. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. STNE's PEG compares to its industry's average PEG of 0.98. 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.
Another notable valuation metric for STNE is its P/B ratio of 2.71. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.46. Over the past year, 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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. STNE has a P/S ratio of 1.05. This compares to its industry's average P/S of 2.8.
These figures are just a handful of the metrics value investors tend to look at, but they help show that StoneCo is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, STNE feels like a great value stock at the moment.
StoneCo Ltd. (STNE - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, STNE crossed above the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
STNE has rallied 16% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests STNE could be on the verge of another move higher.
Looking at STNE's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 2 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on STNE for more gains in the near future.
