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PagSeguro Digital Ltd. (PAGS) Increases Despite Market Slip: Here's What You Need to Know

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In the latest market close, PagSeguro Digital Ltd. (PAGS - Free Report) reached $13.58, with a +0.82% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.04%. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq increased by 0.03%.

Shares of the company have appreciated by 2.59% over the course of the past month, outperforming the Business Services sector's gain of 0.38% and the S&P 500's gain of 2.57%.

Market participants will be closely following the financial results of PagSeguro Digital Ltd. in its upcoming release. The company is predicted to post an EPS of $0.31, indicating a 34.78% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $798.74 million, indicating a 10.65% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.28 per share and a revenue of $3.27 billion, representing changes of +17.43% and +2.36%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for PagSeguro Digital Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.43% higher. PagSeguro Digital Ltd. presently features a Zacks Rank of #1 (Strong Buy).

In terms of valuation, PagSeguro Digital Ltd. is presently being traded at a Forward P/E ratio of 10.5. This valuation marks a discount compared to its industry's average Forward P/E of 15.15.

We can additionally observe that PAGS currently boasts a PEG ratio of 0.74. 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. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.19.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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