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PagSeguro Digital Ltd. (PAGS) Soars 6.6%: Is Further Upside Left in the Stock?

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PagSeguro Digital Ltd. (PAGS - Free Report) shares rallied 6.6% in the last trading session to close at $10.77. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 30.5% gain over the past four weeks.

PagSeguro Digital extended its rally for the third straight day, driven by optimism over its advanced digital banking ecosystem that equips customers to hold a digital account free of cost and undertake a wide array of digital transactions or manage funds. Consumers’ growing inclination to adopt digital means, a long-lasting trend inflicted by the COVID pandemic, coupled with the growing usage of smartphones are expected to sustain investors’ confidence in the solutions suite of PAGS. The stock also received a favorable rating from InvestorsObserver on May 5, 2023.

This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of -4.8%. Revenues are expected to be $697.46 million, up 6.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For PagSeguro Digital Ltd., the consensus EPS estimate for the quarter has been revised 1.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on PAGS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

PagSeguro Digital Ltd. is part of the Zacks Financial Transaction Services industry. DLocal (DLO - Free Report) , another stock in the same industry, closed the last trading session 2.4% higher at $13.82. DLO has returned 0.3% in the past month.

DLocal's consensus EPS estimate for the upcoming report has changed -13.3% over the past month to $0.11. Compared to the company's year-ago EPS, this represents a change of +37.5%. DLocal currently boasts a Zacks Rank of #4 (Sell).

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