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PagSeguro Digital Ltd. (PAGS) Stock Sinks As Market Gains: Here's Why

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PagSeguro Digital Ltd. (PAGS - Free Report) closed at $10.22 in the latest trading session, marking a -3.13% move from the prior day. This change lagged the S&P 500's daily gain of 0.44%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 0.7%.

The stock of company has risen by 20.85% in the past month, leading the Business Services sector's gain of 2.54% and the S&P 500's gain of 4.03%.

The upcoming earnings release of PagSeguro Digital Ltd. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.33, reflecting a 3.13% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $946.04 million, showing a 8.58% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.34 per share and revenue of $3.67 billion, which would represent changes of +10.74% and +5.14%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for PagSeguro Digital Ltd. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.88% higher. As of now, PagSeguro Digital Ltd. holds a Zacks Rank of #3 (Hold).

Digging into valuation, PagSeguro Digital Ltd. currently has a Forward P/E ratio of 7.87. Its industry sports an average Forward P/E of 16.06, so one might conclude that PagSeguro Digital Ltd. is trading at a discount comparatively.

One should further note that PAGS currently holds a PEG ratio of 0.69. 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 1.21.

The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 28% echelons 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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