StoneCo (STNE) - 32.28% Below 52-Week High: Buy or Wait?

Stock Details

StoneCo Ltd (STNE), a prominent company in the technology sector within the software - infrastructure industry, is based in USA and primarily trades on the NASDAQ.Currently, the stock is trading at $11.16. Over the past 52 weeks, it has ranged between $9.45 and $16.48. This places the current price at 67.7% of its 52-week high and 18.1% above its 52-week low. Recent trading volume was recorded at 1,516,022. The 14-day Relative Strength Index (RSI) stands at 57.41, suggesting neutral conditions. The stock is currently trading above its 50-day moving average of $10.99 by 1.55%. Similarly, it is below its 200-day moving average of $12.36 by 9.71%. The MACD histogram is 0.01, indicating bullish momentum (MACD Line: 0.05, Signal Line: 0.04). There are currently 2 active alerts set for STNE by users.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

4.11

Below market average

Forward P/E

8.06

Earnings expected to decline

Price to Book

1.13

EV/EBITDA

3.27

EPS (TTM)

$2.67

Price to Sales

0.20

Beta

1.60

More volatile than market

Q:How is STNE valued relative to its earnings and growth?

StoneCo Ltd trades at a P/E ratio of 4.11, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 8.06 is higher than the current P/E, indicating analysts expect earnings to decline over the next year.

Q:What is STNE's risk profile compared to the market?

With a beta of 1.60, StoneCo Ltd is significantly more volatile than the market. For every 10% market move, this stock tends to move 16% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 1.13 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

26.00%

Operating Margin

44.30%

EBITDA

$7.16B

Return on Equity

30.70%

Return on Assets

7.09%

Revenue Growth (YoY)

4.30%

Earnings Growth (YoY)

273.80%

Q:How profitable and efficient is STNE's business model?

StoneCo Ltd achieves a profit margin of 26.00%, meaning it retains $26.00 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 44.30% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 30.70% and ROA at 7.09%, the company generates strong returns on invested capital.

Q:What are STNE's recent growth trends?

StoneCo Ltd's revenue grew by 4.30% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 273.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SOFTWARE - INFRASTRUCTURE industry averages for proper context.

Company Size & Market

Market Cap

$2.7B

Revenue (TTM)

$13.54B

Revenue/Share (TTM)

$52.29

Shares Outstanding

229.18M

Book Value/Share

$9.93

Asset Type

Common Stock

Q:What is STNE's market capitalization and position?

StoneCo Ltd has a market capitalization of $2.7B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 229.18M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SOFTWARE - INFRASTRUCTURE industry, it competes with other firms in this sector.

Q:How does STNE's price compare to its book value?

StoneCo Ltd's book value per share is $9.93, while the current stock price is $11.16, resulting in a price-to-book (P/B) ratio of 1.12. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$15.95

42.92% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for STNE?

16 analysts cover STNE with 63% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $15.95 implies 42.9% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on STNE?

Current analyst recommendations:2 Strong Buy, 8 Buy, 5 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 31, 2026, 02:26 AM

Technical Indicators

RSI (14-day)

57.41

Neutral

50-Day Moving Average

$10.99

1.55% above MA-50

200-Day Moving Average

$12.36

-9.71% below MA-200

MACD Line

0.05

MACD Signal

0.04

MACD Histogram

0.01

Bullish

Q:What does STNE's RSI value tell investors?

The RSI (Relative Strength Index) for STNE is currently 57.41, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this confirms bullish conditions.

Q:How should traders interpret STNE's MACD and moving average crossovers?

MACD analysis shows the MACD line at 0.05 above the signal line at 0.04, with histogram at 0.01. This bullish crossover suggests upward momentum is building. The narrow histogram suggests a potential trend change ahead. The 50-day MA ($10.99) is below the 200-day MA ($12.36), forming a death cross pattern that often warns of extended weakness. Price is currently between the MAs, suggesting transition.

Indicators last updated: Jul 31, 2026, 12:45 AM

Condition	Threshold	Created At
Price decreases by	20%	Apr 27, 2026, 08:39 PM
Price falls below	$4.00	Apr 27, 2026, 08:39 PM

Condition

Threshold

Created At

Price decreases by

20%

Apr 27, 2026, 08:39 PM

Price falls below

$4.00