From Nasdaq: 2025-03-22 21:15:00

StoneCo (NASDAQ: STNE) saw a 14.2% increase in its stock price this week after reporting better-than-expected quarterly results. The company’s Q4 revenue was 3.61 billion Brazilian real (about $636 million), surpassing analyst estimates of 3.58 billion real (about $631 million). Adjusted earnings per share were $0.40, beating the average estimate by $0.06 per share. StoneCo’s revenue rose 11% year-over-year in Q4, with adjusted earnings per share increasing by 47%. Total payment volumes for small and medium-sized business customers rose by 22% compared to the previous year.

Despite recent gains, StoneCo’s stock is still down by 34% over the past year due to economic conditions in Brazil and growth deceleration. However, with inflation starting to ease in Brazil, the company’s outlook may be improving. StoneCo’s stock is trading at around 8 times this year’s expected earnings, making it seem undervalued. The Motley Fool Stock Advisor analysts have identified StoneCo as a stock to watch, although it was not among their top 10 recommendations for investors at this time.



Read more at Nasdaq: Why StoneCo Stock Surged This Week