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PagSeguro Digital Ltd. (PAGS) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, PagSeguro Digital Ltd. (PAGS - Free Report) closed at $12.65, marking a -0.24% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.32%. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.35%.

Coming into today, shares of the company had lost 11.2% in the past month. In that same time, the Business Services sector lost 4.37%, while the S&P 500 lost 2%.

Analysts and investors alike will be keeping a close eye on the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. In that report, analysts expect PagSeguro Digital Ltd. to post earnings of $0.30 per share. This would mark year-over-year growth of 30.43%. Simultaneously, our latest consensus estimate expects the revenue to be $738.95 million, showing a 2.37% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.29 per share and revenue of $3.26 billion. These totals would mark changes of +18.35% and +1.84%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for PagSeguro Digital Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% higher. Right now, PagSeguro Digital Ltd. possesses a Zacks Rank of #1 (Strong Buy).

Investors should also note PagSeguro Digital Ltd.'s current valuation metrics, including its Forward P/E ratio of 9.83. This indicates a discount in contrast to its industry's Forward P/E of 13.37.

It is also worth noting that PAGS currently has a PEG ratio of 0.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.13.

The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 34% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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