Latest news with #STNE
Yahoo
25-07-2025
- Business
- Yahoo
Can StoneCo's Software Divestment Unlock MSMB-Focused Growth?
StoneCo Ltd.'s STNE recent announcement for a strategic divestiture of a significant part of its software segment, representing 79% of its software segment revenues in 2024, signals a sharpened focus on its core financial services and micro, small and medium business (MSMB). It involves the proposed sale of Linx and related software assets to TOTVS for R$3.41 billion, for which it has entered into an agreement, as well as the already sold SimplesVet, a veterinary-focused software solution, to PetLove for R$140 million. The move is expected to enhance operating efficiency and profit margins as StoneCo doubles down on becoming Brazil's go-to platform for MSMBs. In the first quarter of 2025, StoneCo's MSMB total payment volume (TPV) rose 17% year over year to R$119.5 billion amid effective repricing efforts and expanding product adoption. Its client base also expanded by 17% to 4.3 million active MSMBs. Key to this momentum is the company's bundling strategy, where clients using three or more products increased to 38%, up sharply from 26% a year ago. This indicates success in cross-selling integrated payments, credit and banking services. The company's banking arm is also growing rapidly, with total retail deposits surging 38% to R$8.3 billion. StoneCo's credit portfolio hit R$1.4 billion, underpinned by prudent risk PIX instant payment system has emerged as a major monetization lever, with transaction volumes up 95% year over year. As PIX displaces traditional debit usage, it is increasing client deposits and engagement. Meanwhile, StoneCo projects MSMB TPV to exceed R$670 billion by 2027 — a 14% CAGR from the 2024 levels. How Are PagSeguro and MercadoLibre Performing? Among competitors, PagSeguro Digital Ltd. PAGS is intensifying its emphasis on the MSMB segment, which made up 74% of its TPV in the first quarter of 2025. MSMB TPV grew 11.2% year over year to R$95.2 billion, fueled by stronger point-of-sale (POS) usage. The company saw growth in its active SMB client base and performance, benefiting from its strategic pivot away from lower-value nano-merchants to more lucrative Inc. MELI also continues its robust fintech push through Mercado Pago, with TPV rising 43% year over year to $58.3 billion in the first quarter of 2025. MercadoLibre's monthly fintech users are up 30%+ year over year to 64 million. Its deep regional presence, especially in Argentina and Brazil, and investments in UX, logistics and credit continue to expand its flywheel advantage across Latin America. STNE's Price Performance, Valuation and Estimates Shares of StoneCo have surged 76.5% year to date, outperforming both the broader industry and the S&P 500 Index. Image Source: Zacks Investment Research From a valuation standpoint, StoneCo shares are cheap, as suggested by the Value Score of B. In terms of forward 12-month P/E, STNE is currently trading at 8.66X, which is below the industry average of 40.07X. Image Source: Zacks Investment Research StoneCo's estimate revisions reflect a positive trend. The Zacks Consensus Estimate for 2025 and 2026 EPS has been revised upward over the past month. The Zacks Consensus Estimate for 2025 EPS suggests 10.4% growth year over year, while the same for 2026 calls for a 16.1% increase year over year. Image Source: Zacks Investment Research Currently, StoneCo carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StoneCo Ltd. (STNE) : Free Stock Analysis Report MercadoLibre, Inc. (MELI) : Free Stock Analysis Report PagSeguro Digital Ltd. (PAGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
Are You Looking for a Top Momentum Pick? Why StoneCo Ltd. (STNE) is a Great Choice
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at StoneCo Ltd. (STNE), which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions. It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. StoneCo Ltd. Currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> Let's discuss some of the components of the Momentum Style Score for STNE that show why this company shows promise as a solid momentum pick. Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area. For STNE, shares are up 5.52% over the past week while the Zacks Internet - Software industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 12.53% compares favorably with the industry's 0.69% performance as well. While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of StoneCo Ltd. Have increased 45.18% over the past quarter, and have gained 28.11% in the last year. In comparison, the S&P 500 has only moved 8.73% and 13.86%, respectively. Investors should also take note of STNE's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, STNE is averaging 6,293,092 shares for the last 20 days. The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with STNE. Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost STNE's consensus estimate, increasing from $1.38 to $1.44 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period. Given these factors, it shouldn't be surprising that STNE is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep StoneCo Ltd. On your short list. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StoneCo Ltd. (STNE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
30-06-2025
- Business
- Yahoo
Wall Street Analysts Look Bullish on StoneCo (STNE): Should You Buy?
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though? Let's take a look at what these Wall Street heavyweights have to say about StoneCo Ltd. (STNE) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. StoneCo currently has an average brokerage recommendation (ABR) of 1.67, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.67 approximates between Strong Buy and Buy. Of the nine recommendations that derive the current ABR, seven are Strong Buy, representing 77.8% of all recommendations. Check price target & stock forecast for StoneCo here>>> The ABR suggests buying StoneCo, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation. Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. Looking at the earnings estimate revisions for StoneCo, the Zacks Consensus Estimate for the current year has increased 0.7% over the past month to $1.44. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. 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 #2 (Buy) for StoneCo. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for StoneCo may serve as a useful guide for investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StoneCo Ltd. (STNE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
19-06-2025
- Business
- Yahoo
StoneCo (STNE) Jumps 10% on Broader Market Optimism
StoneCo. Ltd. (NASDAQ:STNE) is one of the . StoneCo ended two straight days of losses on Monday, adding 9.67 percent to close at $15.09 apiece, mimicking the broader market optimism, bolstered by global trade negotiations and expectations that Israel and Iran's war will remain contained. StoneCo. Ltd. (NASDAQ:STNE) is a Brazilian financial technology company that provides platform for businesses to manage payments, software, and banking solutions. In the first quarter of the year, the company netted R$554.4 million, higher by 23 percent than the R$450.4 million registered in the same period last year. A team of software engineers in a digital workspace collaborating on a financial technology software solution. Total revenues increased by 19 percent to R$3.67 billion from R$3.08 billion year-on-year. For full-year 2025, StoneCo. Ltd. (NASDAQ:STNE) expects to book adjusted gross profit of R$7.05 billion, or a 14-percent growth year-on-year. While we acknowledge the potential of STNE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
17-06-2025
- Business
- Yahoo
StoneCo (STNE) Jumps 10% on Broader Market Optimism
StoneCo. Ltd. (NASDAQ:STNE) is one of the . StoneCo ended two straight days of losses on Monday, adding 9.67 percent to close at $15.09 apiece, mimicking the broader market optimism, bolstered by global trade negotiations and expectations that Israel and Iran's war will remain contained. StoneCo. Ltd. (NASDAQ:STNE) is a Brazilian financial technology company that provides platform for businesses to manage payments, software, and banking solutions. In the first quarter of the year, the company netted R$554.4 million, higher by 23 percent than the R$450.4 million registered in the same period last year. A team of software engineers in a digital workspace collaborating on a financial technology software solution. Total revenues increased by 19 percent to R$3.67 billion from R$3.08 billion year-on-year. For full-year 2025, StoneCo. Ltd. (NASDAQ:STNE) expects to book adjusted gross profit of R$7.05 billion, or a 14-percent growth year-on-year. While we acknowledge the potential of STNE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
