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In the latest trading session, StoneCo Ltd. (STNE) closed at $13.41, marking a -0.45% move from the previous day. This change lagged the S&P 500's 0.28% gain on the day. Elsewhere, the Dow saw an upswing of 0.53%, while the tech-heavy Nasdaq appreciated by 0.4%.

Shares of the company have appreciated by 10.96% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78%.

Analysts and investors alike will be keeping a close eye on the performance of StoneCo Ltd. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.35, indicating an 84.21% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $617.71 million, indicating a 3.46% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $1.49 per share and a revenue of $2.55 billion, demonstrating changes of +53.61% and +5.37%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, there's been a 3.96% rise in the Zacks Consensus EPS estimate. StoneCo Ltd. is currently a Zacks Rank #3 (Hold).

With respect to valuation, StoneCo Ltd. is currently being traded at a Forward P/E ratio of 9.06. Its industry sports an average Forward P/E of 29.77, so one might conclude that StoneCo Ltd. is trading at a discount comparatively.

Investors should also note that STNE has a PEG ratio of 0.34 right now. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.74.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 36% 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.

To follow STNE in the coming trading sessions, be sure to utilize Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.