Back to top

Image: Bigstock

PagSeguro Digital Ltd. (PAGS) Stock Falls Amid Market Uptick: What Investors Need to Know

Read MoreHide Full Article

In the latest trading session, PagSeguro Digital Ltd. (PAGS - Free Report) closed at $8.43, marking a -1.86% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.32%. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.26%.

Shares of the company witnessed a loss of 7.24% over the previous month, trailing the performance of the Business Services sector with its loss of 1.01%, and the S&P 500's gain of 4.51%.

The upcoming earnings release of PagSeguro Digital Ltd. will be of great interest to investors. It is anticipated that the company will report an EPS of $0.3, marking a 6.25% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $913.21 million, up 4.44% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.22 per share and revenue of $3.7 billion. These totals would mark changes of +0.83% and +5.98%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for PagSeguro Digital Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. PagSeguro Digital Ltd. is currently a Zacks Rank #3 (Hold).

In the context of valuation, PagSeguro Digital Ltd. is at present trading with a Forward P/E ratio of 7.06. For comparison, its industry has an average Forward P/E of 16.08, 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 0.63. 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 1.27 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


PagSeguro Digital Ltd. (PAGS) - free report >>

Published in