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PagSeguro Digital Ltd. (PAGS) Declines More Than Market: Some Information for Investors

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In the latest close session, PagSeguro Digital Ltd. (PAGS - Free Report) was down 2.88% at $10.13. The stock's change was less than the S&P 500's daily loss of 0.19%. Meanwhile, the Dow experienced a drop of 0.8%, and the technology-dominated Nasdaq saw a decrease of 0.1%.

The stock of company has risen by 4.09% in the past month, leading the Business Services sector's loss of 0.17% and the S&P 500's gain of 2.26%.

The investment community will be closely monitoring the performance of PagSeguro Digital Ltd. in its forthcoming earnings report. In that report, analysts expect PagSeguro Digital Ltd. to post earnings of $0.42 per share. This would mark year-over-year growth of 23.53%. Simultaneously, our latest consensus estimate expects the revenue to be $1.02 billion, showing a 16.51% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.44 per share and revenue of $3.81 billion. These totals would mark changes of +19.01% and 0%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.37% lower. PagSeguro Digital Ltd. is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, PagSeguro Digital Ltd. is presently trading at a Forward P/E ratio of 6.44. This valuation marks a discount compared to its industry average Forward P/E of 13.33.

We can also see that PAGS currently has a PEG ratio of 0.44. 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 0.99 based on yesterday's closing prices.

The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 194, placing it within the bottom 21% of over 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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