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 strategy. While the company has demonstrated solid financial growth and analysts generally maintain a positive outlook, the recent price decline, lack of strong proprietary trading signals, and mixed sentiment in options and analyst ratings suggest waiting for a more favorable entry point.
The technical indicators show mixed signals. The MACD is positive but contracting, RSI is neutral at 46.196, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock is trading close to its support level (S1: 16.09), and the current price of 16.33 reflects a -2.45% decline in the regular market.
Strong financial performance in Q3 2025, with revenue up 16.47% YoY, net income up 30.96% YoY, and EPS up 21.91% YoY.
Analysts like BTIG and Goldman Sachs maintain Buy ratings with price targets above the current price, indicating long-term growth potential.
The company is positioned as a leader in small business payment solutions in Brazil, with opportunities to expand into banking and credit solutions.
Recent price decline of -2.45% in the regular market and -2.09% in pre-market trading, reflecting weak short-term sentiment.
Mixed analyst ratings, with Grupo Santander downgrading the stock to Neutral.
Options data indicates elevated uncertainty with high implied volatility (61.
and a neutral-to-bearish sentiment.
In Q3 2025, StoneCo reported strong financial growth: Revenue increased by 16.47% YoY to 3.57 billion, Net Income grew by 30.96% YoY to 706.77 million, EPS rose by 21.91% YoY to 2.17, and Gross Margin improved by 1.75% to 75.71%. These metrics indicate robust business performance and profitability.
Analysts are generally positive but mixed. BTIG initiated coverage with a Buy rating and a $22 price target, citing strong growth potential. Goldman Sachs also maintains a Buy rating but lowered its price target to $19. UBS reduced its target to $19.50 but kept a Buy rating. Grupo Santander downgraded the stock to Neutral with a $21 price target.
