StoneCo stock: buy or sell?

STNE stock price: $71.84 -1.14% At close on Nov 24th, 2020

Updated on:
Nov 24th, 2020

2

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

StoneCo ratings

In the last month, 2 brokerage ratings were published for StoneCo

StoneCo analysts' ratings - Last 30 days
Brokerage firmRating
Oct 30th, 2020
Bradesco Corretora SellNeutral
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

SMAs overview

STNE stock SMAs chart

Supports and resistances

Price is at all-time highs and there are not upper resistances.

The current support levels are:

  • S1: $55.43 (-22.84% below)
  • S2: $55.00 (-23.44% below)
  • S3: $50.40 (-29.84% below)
  • Bollinger bands

    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

    STNE stock Bollinger Bands chart

    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

    STNE stock RSI chart

    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

    STNE stock price history chart

    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%.

    StoneCo stock price predictions
    Brokerage firmPrice target
    Oct 30th, 2020
    Bradesco Corretora $53.00
    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 competitors

    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:

    StoneCo competitors
    CompanyMarket capRatingBullish ratings1
    StoneCo ($STNE) $19.3B Neutral 0
    Salesforce.com ($CRM) $227.1B Buy 5
    SAP SE ADS ($SAP) $137.0B Buy 8
    Shopify ($SHOP) $117.6B Buy 2
    ServiceNow ($NOW) $93.9B Buy 9
    Intuit ($INTU) $91.0B Buy 6
    Uber ($UBER) $81.8B Strong buy 14

    1 In the last 30 days.

    StoneCo performance

    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.

    STNE performance compared
    Company1m3m6m
    StoneCo ($STNE) 25.40% 45.90% 139.10%
    Salesforce.com ($CRM) 5.20% -2.30% 49.70%
    SAP SE ADS ($SAP) -1.50% -30.50% -8.20%
    Shopify ($SHOP) -9.00% -10.20% 28.40%
    ServiceNow ($NOW) 1.20% 6.10% 34.90%
    Intuit ($INTU) 4.40% 1.20% 21.20%
    Uber ($UBER) 37.10% 61.40% 43.40%

    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

    StoneCo summary

    Tuesday, November 24th, 2020
    Open$73.63
    Close$71.84
    Day range$71.01 - $74
    Previous close$72.67
    Session gain-1.14%
    Average true range$3.36
    50d mov avg$58.08
    100d mov avg$52.57
    200d mov avg$41.91
    Earnings dateMarch 1st, 2021

    Frequently asked questions

    What is StoneCo stock symbol?

    StoneCo Ltd. is a public company trading in the US stock market with the STNE symbol

    Is StoneCo stock a buy or sell?

    StoneCo received 2 ratings in the last 30 days: 0 bullish, 0 bearish and 2 neutral.

    Will STNE go up?

    StoneCo had different price forecasts published by market analysts in the last 30 days setting the target price to $60.50. That is a 15.79% lower than the last price ($71.84).