StoneCo

STNE

Market cap $4.42B

Discover five low P/B picks like STNE that are undervalued and show solid growth potential based on value-focused filters.

Value investing is essentially about selecting stocks that are usually cheap but fundamentally sound. GLDD, STNE, PCG & ENS boast a low P/CF ratio.

Stone (STNE) is rated Buy due to attractive 9x earnings valuation, strong capital returns, and potential for further EPS growth. STNE's payments business shows stable growth in line with Brazil's nominal GDP, but faces margin pressure from competition and PIX adoption. Credit operations are expanding rapidly, offering higher yields but increasing risk, with NPLs rising and future growth expected to come from this segment.

StoneCo is reiterated as a Buy, driven by robust growth, strong financials, and attractive valuation despite the recent market selloff. STNE reported double-digit YoY growth in Payments and explosive growth in Banking and Credit, with raised EPS guidance and aggressive share buybacks. Macroeconomic headwinds and Brazil-specific risks persist, but STNE's local strength and potential for future international expansion provide significant long-term upside.

StoneCo (STNE) has become technically an oversold stock now, which implies exhaustion of the heavy selling pressure on it. This, combined with strong agreement among Wall Street analysts in revising earnings estimates higher, indicates a potential trend reversal for the stock in the near term.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Investors interested in Internet - Software stocks are likely familiar with StoneCo Ltd. (STNE) and Informatica Inc. (INFA).

Five undervalued picks - including StoneCo and MillerKnoll - shine with strong growth prospects and low price-to-book ratios this November.

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, Nov.12: