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PagSeguro Digital Ltd. (PAGS) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest market close, PagSeguro Digital Ltd. (PAGS - Free Report) reached $9.57, with a -0.73% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.64%. Elsewhere, the Dow lost 0.24%, while the tech-heavy Nasdaq lost 0.74%.

The company's shares have seen an increase of 22.49% over the last month, surpassing the Business Services sector's gain of 0.05% and the S&P 500's gain of 0.38%.

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 $0.29 per share. This would mark a year-over-year decline of 12.12%. Simultaneously, our latest consensus estimate expects the revenue to be $827.19 million, showing a 4.91% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $1.24 per share and a revenue of $3.6 billion, demonstrating changes of +2.48% and +3.01%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for PagSeguro Digital Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 2.71% lower within the past month. At present, PagSeguro Digital Ltd. boasts a Zacks Rank of #3 (Hold).

Digging into valuation, PagSeguro Digital Ltd. currently has a Forward P/E ratio of 7.79. For comparison, its industry has an average Forward P/E of 14.41, which means PagSeguro Digital Ltd. is trading at a discount to the group.

It's also important to note that PAGS currently trades at a PEG ratio of 0.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial Transaction Services was holding an average PEG ratio of 1.19 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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