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PagSeguro Digital Ltd. (PAGS) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest close session, PagSeguro Digital Ltd. (PAGS - Free Report) was down 1.2% at $8.20. The stock trailed the S&P 500, which registered a daily loss of 0.08%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq added 0.35%.

Prior to today's trading, shares of the company had lost 11.23% lagged the Business Services sector's loss of 3.73% and the S&P 500's gain of 1.21%.

The upcoming earnings release of PagSeguro Digital Ltd. will be of great interest to investors. On that day, PagSeguro Digital Ltd. is projected to report earnings of $0.31 per share, which would represent a year-over-year decline of 3.13%. In the meantime, our current consensus estimate forecasts the revenue to be $898.63 million, indicating a 2.77% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $1.29 per share and a revenue of $3.66 billion, demonstrating changes of +6.61% and +4.8%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for PagSeguro Digital Ltd. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.2% higher. Currently, PagSeguro Digital Ltd. is carrying a Zacks Rank of #2 (Buy).

In terms of valuation, PagSeguro Digital Ltd. is currently trading at a Forward P/E ratio of 6.43. This signifies a discount in comparison to the average Forward P/E of 14.91 for its industry.

We can also see that PAGS currently has a PEG ratio of 0.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.26 based on yesterday's closing prices.

The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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