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

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In the latest market close, PagSeguro Digital Ltd. (PAGS - Free Report) reached $12.62, with a -0.39% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.48%. Elsewhere, the Dow saw an upswing of 0.32%, while the tech-heavy Nasdaq appreciated by 0.75%.

Coming into today, shares of the company had gained 3.51% in the past month. In that same time, the Business Services sector gained 0.64%, while the S&P 500 gained 2%.

The upcoming earnings release of PagSeguro Digital Ltd. will be of great interest to investors. The company is expected to report EPS of $0.30, up 30.43% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $738.95 million, reflecting a 2.37% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.29 per share and revenue of $3.26 billion, indicating changes of +18.35% and +1.84%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for PagSeguro Digital Ltd. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.39% decrease. PagSeguro Digital Ltd. is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, PagSeguro Digital Ltd. is currently being traded at a Forward P/E ratio of 9.82. For comparison, its industry has an average Forward P/E of 15.12, which means PagSeguro Digital Ltd. is trading at a discount to the group.

It is also worth noting that PAGS currently has a PEG ratio of 0.68. 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 had an average PEG ratio of 1.04 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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