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PagSeguro Digital Ltd. (PAGS) Stock Slides as Market Rises: Facts to Know Before You Trade

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PagSeguro Digital Ltd. (PAGS - Free Report) ended the recent trading session at $10.76, demonstrating a -2.98% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.05%. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.64%.

The stock of company has risen by 11.35% in the past month, leading the Business Services sector's gain of 3.68% and the S&P 500's gain of 8.59%.

The investment community will be closely monitoring the performance of PagSeguro Digital Ltd. in its forthcoming earnings report. On that day, PagSeguro Digital Ltd. is projected to report earnings of $0.4 per share, which would represent year-over-year growth of 29.03%. In the meantime, our current consensus estimate forecasts the revenue to be $1.01 billion, indicating a 22.01% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.66 per share and revenue of $4.12 billion, which would represent changes of +16.9% and +12.65%, respectively, from the prior year.

It is also important to note the recent changes 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 shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.61% upward. Right now, PagSeguro Digital Ltd. possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, PagSeguro Digital Ltd. is currently exchanging hands at a Forward P/E ratio of 6.67. This represents a discount compared to its industry average Forward P/E of 12.08.

Also, we should mention that PAGS has a PEG ratio of 0.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Financial Transaction Services industry stood at 0.95 at the close of the market yesterday.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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