STNE Should I Buy
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StoneCo Ltd (STNE) is not a strong buy at the moment for a beginner investor with a long-term focus. While the stock shows potential for growth in the next month, the lack of significant positive catalysts, declining financial performance, and neutral trading sentiment suggest that it is better to hold off on investing right now.
The MACD is positive but contracting, RSI is neutral at 41.023, and moving averages are converging, indicating no clear trend. The stock is trading below its pivot level of 14.832, with key resistance at 15.615 and support at 14.049.
The company is positioned well in the Brazilian market for small business payment solutions.
Recent financial performance shows a significant decline in net income (-117.10% YoY) and EPS (-118.34% YoY). Gross margin also slightly declined. No recent news or significant insider or hedge fund activity to drive the stock higher.
In Q4 2025, revenue increased by 3.21% YoY, but net income and EPS saw significant declines of -117.10% and -118.34% YoY, respectively. Gross margin dropped slightly to 75.53%.
Analysts have generally maintained Buy ratings with slight reductions in price targets. JPMorgan recently lowered its price target to $20 from $21, while UBS and Goldman Sachs also slightly reduced their targets. BTIG initiated coverage with a Buy rating and a $22 price target, citing strong growth potential in core business gross profit.
