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Are Investors Undervaluing PagSeguro Digital (PAGS) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is PagSeguro Digital (PAGS - Free Report) . PAGS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 10.37. This compares to its industry's average Forward P/E of 23.98. Over the last 12 months, PAGS's Forward P/E has been as high as 12.28 and as low as 6.33, with a median of 9.06.
Investors will also notice that PAGS has a PEG ratio of 1.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PAGS's industry currently sports an average PEG of 1.48. Over the last 12 months, PAGS's PEG has been as high as 1.30 and as low as 0.67, with a median of 0.94.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PAGS has a P/S ratio of 1.39. This compares to its industry's average P/S of 2.78.
Finally, investors will want to recognize that PAGS has a P/CF ratio of 6.94. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.40. PAGS's P/CF has been as high as 7.86 and as low as 3.97, with a median of 5.83, all within the past year.
These are just a handful of the figures considered in PagSeguro Digital's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PAGS is an impressive value stock right now.
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Are Investors Undervaluing PagSeguro Digital (PAGS) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is PagSeguro Digital (PAGS - Free Report) . PAGS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 10.37. This compares to its industry's average Forward P/E of 23.98. Over the last 12 months, PAGS's Forward P/E has been as high as 12.28 and as low as 6.33, with a median of 9.06.
Investors will also notice that PAGS has a PEG ratio of 1.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PAGS's industry currently sports an average PEG of 1.48. Over the last 12 months, PAGS's PEG has been as high as 1.30 and as low as 0.67, with a median of 0.94.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PAGS has a P/S ratio of 1.39. This compares to its industry's average P/S of 2.78.
Finally, investors will want to recognize that PAGS has a P/CF ratio of 6.94. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.40. PAGS's P/CF has been as high as 7.86 and as low as 3.97, with a median of 5.83, all within the past year.
These are just a handful of the figures considered in PagSeguro Digital's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PAGS is an impressive value stock right now.