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PagSeguro Digital Ltd. (PAGS) Rises But Trails Market: What Investors Should Know

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In the latest close session, PagSeguro Digital Ltd. (PAGS - Free Report) was up +1.14% at $8.85. This move lagged the S&P 500's daily gain of 1.56%. Meanwhile, the Dow experienced a rise of 1.29%, and the technology-dominated Nasdaq saw an increase of 2.21%.

Heading into today, shares of the company had lost 8.28% over the past month, lagging the Business Services sector's loss of 3.52% and the S&P 500's gain of 0.41%.

Analysts and investors alike will be keeping a close eye on the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.35, indicating a 9.38% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $967.82 million, indicating a 11.08% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.38 per share and a revenue of $3.68 billion, signifying shifts of +14.05% and +5.35%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for PagSeguro Digital Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 7.17% rise in the Zacks Consensus EPS estimate. PagSeguro Digital Ltd. currently has a Zacks Rank of #1 (Strong Buy).

Looking at valuation, PagSeguro Digital Ltd. is presently trading at a Forward P/E ratio of 6.33. This indicates a discount in contrast to its industry's Forward P/E of 14.35.

One should further note that PAGS currently holds a PEG ratio of 0.44. 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. The Financial Transaction Services industry had an average PEG ratio of 1.15 as trading concluded yesterday.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 30, putting it in the top 13% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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