STNE Should I Buy
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StoneCo Ltd. (STNE) is not a strong buy for a beginner, long-term investor at this moment. While the stock appears undervalued based on its forward P/E ratio and has potential growth catalysts, the recent financial performance, technical indicators, and lack of strong trading signals suggest a cautious approach. Holding or waiting for clearer positive signals is recommended.
The MACD is positive and expanding, indicating a potential bullish trend. However, RSI is neutral at 47.421, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 13.86, with key resistance at 14.418 and support at 13.302. Overall, the technical indicators do not strongly support a buy at this time.
Analysts maintain a Buy rating with price targets ranging from $19 to $22, indicating potential upside. The company is positioned for growth in the Brazilian payments market and is expected to grow core business gross profit by 12%+ in fiscal 2026.
The stock has underperformed significantly, declining 14.88% over the past month. Financial performance in Q4 2025 showed a sharp decline in net income (-117.10%) and EPS (-118.34%) YoY. Gross margin also slightly declined. Additionally, hedge funds and insiders are neutral, and there are no significant trading trends.
In Q4 2025, revenue increased by 3.21% YoY to 3.73 billion BRL. However, net income dropped by -117.10% YoY to 499.96 million BRL, and EPS fell by -118.34% YoY to 1.83. Gross margin slightly declined to 75.53%, down -0.16% YoY. The financial results indicate weak profitability despite slight revenue growth.
Analysts are generally positive on StoneCo, with multiple Buy ratings and price targets ranging from $19 to $22. However, some price targets have been slightly lowered recently, and one downgrade to Neutral was noted. Analysts highlight the company's leadership in the Brazilian payments market and potential for growth in banking and credit solutions.
