StoneCo: Fear Is Creating A Massive Valuation Disconnect

StoneCo is reaffirmed as a Strong Buy, with robust fundamentals and a compelling valuation despite recent macro headwinds. STNE's capital ratio reduction to 17% unlocks capital for growth and buybacks, supporting a projected 30% shareholder yield in 2026. Macroeconomic risks, especially from the Iran conflict and elevated Selic rates, may pressure near-term earnings but do not undermine long-term growth prospects.