StoneCo Ltd (STNE) stock poised to deliver a potential return of 52.66%

At the time of writing, StoneCo Ltd [STNE] stock is trading at $17.47, up 0.98%. An important factor to consider is whether the stock is rising or falling in short-term value. The STNE shares have gain 3.01% over the last week, with a monthly amount glided 1.57%, and seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

StoneCo Ltd [NASDAQ: STNE] stock has seen the most recent analyst activity on February 01, 2024, when UBS downgraded its rating to a Neutral and also boosted its price target to $21 from $18. Previously, Goldman upgraded its rating to Buy on January 22, 2024, and elevated its price target to $21. On November 16, 2023, upgrade upgraded it’s rating to Buy. UBS upgraded its rating to a Buy and increased its price target to $18 on August 03, 2023. HSBC Securities upgraded its rating to a Buy and raised its price target to $15 on June 13, 2023. Barclays started tracking with a Equal Weight rating for this stock on May 11, 2023, and assigned it a price target of $13. In a note dated December 07, 2022, Morgan Stanley downgraded an Equal-Weight rating on this stock and revised its target price from $17 to $15.

For the past year, the stock price of StoneCo Ltd fluctuated between $8.63 and $19.46. Currently, Wall Street analysts expect the stock to reach $26.67 within the next 12 months. StoneCo Ltd [NASDAQ: STNE] shares were valued at $17.47 at the most recent close of the market. An investor can expect a potential return of 52.66% based on the average STNE price forecast.

Analyzing the STNE fundamentals

According to StoneCo Ltd [NASDAQ:STNE], the company’s sales were 998.16M for trailing twelve months, which represents an 29.61% jump. Gross Profit Margin for this corporation currently stands at 0.73% with Operating Profit Margin at 0.47%, Pretax Profit Margin comes in at 0.13%, and Net Profit Margin reading is 0.09%. To continue investigating profitability, this company’s Return on Assets is posted at 0.02, Equity is 0.08 and Total Capital is 0.28. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 0.33.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 17.23 points at the first support level, and at 17.00 for the second support level. However, for the 1st resistance point, the stock is sitting at 17.69, and for the 2nd resistance point, it is at 17.91.

Ratios To Look Out For

It is important to note that StoneCo Ltd [NASDAQ:STNE] has a current ratio of 1.27. On the other hand, the Quick Ratio is 1.27, and the Cash Ratio is 0.14. Considering the valuation of this stock, the price to sales ratio is 5.25, the price to book ratio is 1.95 and price to earnings (TTM) ratio is 28.20.

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