(VIANEWS) – Investors appear pleased with StoneCo’s (NASDAQ: STNE) latest earnings report, sending shares up 12.36% at 21:32 EST Monday evening – reflecting its strong Q4 2021 earnings report which showed a 44.6% year-on-year net revenue increase and overall trading session losses on Monday (0.11% to EUR13,783.21). StoneCo’s last close was EUR10.72 which is 27.21% below its 52-week high of EUR14.83
About StoneCo
StoneCo Ltd is a financial technology company providing electronic commerce software solutions in Brazil across various channels. Primarily serving small and medium-sized businesses, its sales team focuses on selling its solutions directly to both brick-and-mortar merchants as well as digital merchants. Furthermore, its proprietary Stone Hubs provide hyper-local sales and services. Founded in 2000 and based out of Cayman Islands –
Yearly Analysis
StoneCo’s stock (EUR) is currently trading at EUR12.05, much lower than its 52-week high of EUR14.83 but significantly higher than its 52-week low of EUR8.09.
StoneCo anticipates sales growth this year of 20.9% and for next year of 9.2%.
StoneCo is currently reporting an EBITDA of 3.77.
Investors should carefully consider these factors along with their investment goals and risk tolerance when making decisions regarding StoneCo’s stock investments. Investors should monitor its financial performance, industry trends and any relevant macroeconomic influences that could alter its performance over time.
Technical Analysis
StoneCo’s stock (STNE) has shown promising signs of strength recently, surpassing both its 50-day and 200-day moving averages (EUR10.94 and EUR11.39 respectively), suggesting an upward momentum in both short- and long-term performance.
Furthermore, its trading volume of 118,360,290 represents an increase of 168.11% compared to its average volume of 45,679,000 and may indicate strong investor enthusiasm and potential buying pressure.
Looking at STNE’s historical volatility levels, we can see that its intraday variation has remained relatively low over the past month and quarter, at just 0.08% and 0.51%, respectively. However, its highest amplitude of average volatility was 2.01% last week indicating increased price fluctuations.
According to the stochastic oscillator, StoneCo’s stock is currently considered oversold (=20), suggesting it may be undervalued and due for an upward price swing.
Overall, STNE may present investors with an attractive investment opportunity due to its combination of positive momentum, high trading volume, low volatility levels and oversold status. As with any investment decision, however, conducting in-depth research and analysis before making your final decision should always be carried out before taking action.
Quarter Analysis
StoneCo’s impressive sales growth estimates for the current and upcoming quarters reflects their positive investment outlook, with current quarter sales increasing 24.1% and 17.1% for next quarter sales respectively indicating a growing customer base with increasing demand for its services.
StoneCo’s growth estimates for both this quarter and next are notable: 83.3 and 66% respectively. These projections signal future success for StoneCo.
StoneCo’s year-on-year quarterly revenue growth of 28.4% over the last twelve months with current revenue at 10.57B is indicative of its solid financial position and steady expansion, along with its projections. All these indicators make StoneCo an appealing investment opportunity.
As with any investment decision, it’s essential to carefully consider other aspects such as StoneCo’s competitive position, management team and market conditions before making a final decision. Speaking to a financial advisor can also be useful when trying to identify an optimal investment strategy suited for both your needs and risk tolerance.
Equity Analysis
StoneCo is a company with an Earnings Per Share (EPS) value of EUR0.5 over the past twelve months, suggesting it generated EUR0.5 in profits per share during that timeframe. Their price-earnings ratio stands at 24.09, meaning investors are willing to pay EUR24.09 for every euro earned annually – meaning StoneCo trades at a premium relative to its earnings.
StoneCo’s return on equity for the twelve trailing months stands at 6.13%, which indicates that for every EUR1 of shareholder’s equity invested, it has generated EUR0.0613 of profit. This indicates that StoneCo is currently producing an average return on equity; however, there may still be room for improvement.
Overall, StoneCo’s financial performance is mixed. Although its return on equity is moderate, its price to earnings ratio suggests it may be trading at an unjustified premium relative to earnings. Investors should carefully consider this information and make an investment decision accordingly.
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