StoneCo stock: buy or sell?
Nov 24th, 2020
StoneCo stock brief
- StoneCo slided a -1.14% after reaching new all-time highs on Tuesday
- StoneCo Ltd. provides financial technology solutions to clients and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil.
Should I buy StoneCo stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $STNE stock a buy?
In the current situation of StoneCo there is not any eligible buy setup. This doesn't mean $STNE will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell StoneCo stock?
Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies prevent us from making impetuous decisions based on our personal moods or the buzz surrounding the market. We like very simple setups to guide us on when is a good time to sell a stock. Be aware that these setups should not be used for shorting StoneCo stock
As a golden rule, you should never hold an operation that shows a greater losses than those expected by the time of purchase. The moment to sell your stock must always be ruled by the stop-loss (automatic or manual)
Is it time to sell StoneCo stock?
In the current situation of StoneCo there is not any eligible sell setup, so StoneCo stock holders with operations in green can keep their positions
In the last month, 2 brokerage ratings were published for StoneCo
|Oct 30th, 2020|
|Bradesco Corretora||Sell → Neutral|
|Nov 18th, 2020|
|Bank of America||Neutral|
StoneCo stock analysis
StoneCo shares started an uptrend last April, and grew an amazing 305.42%. The price line shows higher highs and higher troughs, and along the way provided some buy points for those who wanted to enter. Latest low was in late October, when price bounced at $50.40. StoneCo broke out above $55.43 (its last top) on November 4. That breakout was a good buying opportunity that resulted in a 29.60% gain
$STNE at new Highs
On Tuesday, StoneCo reached new all-time highs (ATH) again at $74.00. Stock rallied fast in the last 2 weeks, smashing new all-time highs 8 times
Supports and resistances
Price is at all-time highs and there are not upper resistances.
The current support levels are:
Since the price surpassed the upper band on Monday, the price corrected downwards by 1.90%. The price is moving near to the upper Bollinger band, signaling some level of overbought in recent sessions. This is not a sell signal, as price can move in these levels for many days and weeks
Relative strength index
Relative strength (RSI) climbed over the overbought line Tuesday, with a reading of 76.52. Breaking through above the overvalued zone is not a bearish signal, as shares can be in the overvalued zone for many weeks and may continue to gain
StoneCo stock price history
StoneCo started trading priced at an adjusted price1 of $32.00 on Oct 2018. Since then, STNE stock has risen by 124.50%, with an average of 62.25% per year. An investment of thousand dollars on the IPO would have a value of $2,245.00 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for StoneCo stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are posted every day by banks, financial institutions and independent analysts.
The following table shows the price forecasts published by brokerage institutions over the last 30 days. If you are a small trader you shouldn't invest based on these predictions.
The average price target for StoneCo stock calculated from the table below is $60.50. StoneCo closed at $71.84 on Tuesday, so the target price is expecting a drop by 15.79%.
|Brokerage firm||Price target|
|Oct 30th, 2020|
|Nov 18th, 2020|
|Bank of America||$61.00 → $68.00|
Earnings and financials
FQ3 investors event was hosted by StoneCo ($STNE) in late October after posting the financial report. StoneCo beat Wall St estimates and reported a per-share earnings of $0.18, that is a 20.00% better than expected versus the initial estimates of $0.15. On the same basis, reported revenues were $173.8 million compared to estimates of $143.6 million.By comparison, the EPS for the same quarter last year was $0.72, so reported EPS is a drop of -75.00%. Sales exploded a 55.02% on an annualized basis in the fiscal third-quarter, from $2.9B to $4.5B last quarter.
StoneCo ($STNE) is presenting Q4 earnings report next March 2021.
StoneCo is classified inside the Technology sector and the Software—Application industry, where it has 116 industry peers.
The following are some of StoneCo most relevant competitors:
|Company||Market cap||Rating||Bullish ratings1|
|SAP SE ADS ($SAP)||$137.0B||Buy||8|
|Uber ($UBER)||$81.8B|| ||14|
1 In the last 30 days.
To better understand StoneCo stock performance you must compare its gains with other related stocks in same sector or industry.. For StoneCo, the benchmark is made against Salesforce.com, SAP SE ADS, Shopify, ServiceNow, Intuit and Uber.
|SAP SE ADS ($SAP)||-1.50%||-30.50%||-8.20%|
Disclaimer:The opinions published in this post are personal and not recommendations for you to buy or sell shares. The author of this paper does not have an understanding of the individual situations of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are provided for education purposes only
|Tuesday, November 24th, 2020|
|Day range||$71.01 - $74|
|Average true range||$3.36|
|50d mov avg||$58.08|
|100d mov avg||$52.57|
|200d mov avg||$41.91|
|Earnings date||March 1st, 2021|