StoneCo (STNE) is scheduled to release its Q4 earnings on March 18, 2025, after market close. Consensus estimates predict an EPS of $0.34 (down 80.7% year-over-year) and revenue of $618.45M (down 81.0% year-over-year). Historically, StoneCo has consistently beaten EPS and revenue estimates, which could provide a positive catalyst for the stock. However, recent revisions show mixed trends, with 3 upward and 3 downward EPS revisions, and 2 upward revenue revisions.

Price Action and Technicals

As of the latest data, STNE closed at $9.85 in the regular market, with a 9.32% increase in after-hours trading to $10.79. The stock has shown volatility, with a -3.34% decline during the regular session but rebounding sharply post-market. The RSI (14) is at 57.09, indicating a neutral position, while the MACD is slightly bullish at 0.12.

Options Trading Insights

The implied move for STNE around earnings is +/-10.79%, reflecting high volatility expectations. This suggests that investors anticipate a significant reaction to the earnings report.

Conclusion

Given the mixed revisions and high volatility ahead of earnings, it may be prudent to hold STNE stock until the earnings report clarifies the outlook. The stock's historical ability to beat estimates provides upside potential, but the significant year-over-year declines in expected results warrant caution.

What is price prediction 2025 for STNE Stock?

StoneCo Ltd. (STNE) is expected to reach a price target of $13.17 by the end of 2025, driven by potential earnings beats and improving analyst sentiment. The stock currently trades at $10.79, with technical indicators suggesting a neutral trend and Fibonacci resistance levels at $10.05 and $10.35. However, risks remain, with a potential downside to $9 if earnings disappoint.

What is surpport and resistant level for STNE Stock?

The S1 support level for STNE Stock is $9.24 ,The R1 resistant level for STNE Stock is $11.34.

What is the current price of STNE Stock?

As of the end of day on 2025-03-24, the price of STNE Stock was $11.37.

What is the target price of STNE Stock?

The target price for STNE Stock according to analyst rating is 11.00, with the highest price target at 14.00 and the lowest at 9.00. Analysts have a Moderate Buy rating on STNE Stock overall.

What is the market cap of StoneCo Ltd?

The market cap of STNE is $3.1B.

Is StoneCo Ltd (STNE) overvalued?

Analysis and Insights

StoneCo Ltd. (STNE) appears to be undervalued based on its current financial performance and market expectations. Here's a concise analysis:

Revenue Growth: STNE has shown consistent revenue growth, with Q3 2024 revenue reaching $3.35B, up from $3.08B in Q1 2024, indicating strong top-line expansion.
Net Income: Net income has also risen steadily, from $373M in Q1 2024 to $539M in Q3 2024, reflecting improving profitability.
Valuation Metrics:
- The price-to-earnings (P/E) ratio is 1.72 for Q3 2024, significantly lower than industry averages.
- The EV/EBITDA ratio of 1.19 suggests undervaluation relative to earnings and debt.
Market Sentiment: STNE has consistently beaten EPS and revenue estimates, with a 100% beat rate over the last year, indicating strong execution.
Options Market: The implied move for STNE's earnings is 10.79%, reflecting market anticipation of positive results.

Conclusion

Based on the analysis, STNE is undervalued given its strong financial performance and attractive valuation metrics.

What is StoneCo Ltd (STNE)'s business?

StoneCo Ltd. is a provider of financial technology and software solutions. The Company has designed its cloud-based technology platform, namely the Stone Business Model, for its clients to connect, get paid and grow their businesses. The Company’s segments include financial services and software. In financial services, it offers payments, digital banking and credit solutions, focused mainly on micro, small and medium businesses (MSMBs). In software, it offers point of sale (POS) and enterprise resource planning (ERP) solutions for different retail and service verticals, customer relationship management (CRM), engagement tools, e-commerce and Omnichannel solutions, among others. It also provides digital product enhancements to help its merchants improve their consumers’ experience, such as its split-payment processing, multi-payment processing, recurring payments for subscriptions, and one-click buy functionality. It provides its clients with store, life and health insurance solutions.

What is price prediction 2030 for STNE Stock?

The price prediction for STNE stock by 2030 is $25 per share. This forecast is based on the company's potential for growth in Brazil's fintech sector, despite current challenges like rising interest rates and industry pressures. Analysts maintain a positive long-term outlook, with targets reflecting confidence in StoneCo's ability to navigate these headwinds.