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

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PagSeguro Digital Ltd. (PAGS - Free Report) closed at $9.64 in the latest trading session, marking a -1.03% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.74%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.76%.

Shares of the company have depreciated by 10.89% over the course of the past month, underperforming the Business Services sector's gain of 2.83%, and the S&P 500's gain of 0.79%.

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 $0.39 per share. This would mark year-over-year growth of 14.71%. Simultaneously, our latest consensus estimate expects the revenue to be $1 billion, showing a 14.8% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.36 per share and revenue of $3.77 billion, indicating changes of +12.4% and +7.9%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for PagSeguro Digital Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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. Over the past month, there's been a 1.45% fall in the Zacks Consensus EPS estimate. PagSeguro Digital Ltd. is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that PagSeguro Digital Ltd. has a Forward P/E ratio of 7.19 right now. This represents a discount compared to its industry average Forward P/E of 14.33.

Also, we should mention that PAGS has a PEG ratio of 0.49. 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 1.02 as trading concluded yesterday.

The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 177, this industry ranks in the bottom 29% of all industries, numbering over 250.

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

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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