Warning: STNE is at high risk of performing badly

StoneCo Ltd. (NASDAQ:STNE) has characteristics which have been historically associated with poor future stock performance. STNE has decelerating momentum and inferior profitability when compared to other Financials stocks, to the point that it gets a Sell rating from our Quant rating system. Stocks rated Sell or worse by our Quant rating system have massively underperformed the S&P 500, as this article will describe.
The company has 3M Price Performance of -9.13% while the Financials sector median is 11.64%.

The company has Levered FCF Margin (TTM) of -29.27% while the Financials sector median is 18.83%.

Due to these factors our quant model has rated StoneCo Ltd. as Sell and the company has an overall rank of 543 out of 3160 in the Financials sector. Compared to the S&P 500, stocks rated Sell or worse were down 20% on average per year over the last 10 years.

If you are looking for alternatives to StoneCo Ltd. (NASDAQ:STNE) see our top rated Financials sector stocks by quant rating. Our top rated stocks have beaten the S&P 500 by 1300% over the last 10 years.
The Sell warnings are based on our Quant Ratings, a systematic quantitative model which generates Seeking Alpha’s Sell ratings. For information about Quant Ratings, backtesting and its limitations, please read more here.

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