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Why PagSeguro Digital Ltd. (PAGS) Dipped More Than Broader Market Today

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In the latest trading session, PagSeguro Digital Ltd. (PAGS - Free Report) closed at $8.90, marking a -1.66% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.77%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.92%.

Shares of the company have appreciated by 1.8% over the course of the past month, outperforming the Business Services sector's loss of 5.02%, and the S&P 500's gain of 0.96%.

The investment community will be paying close attention to the earnings performance of PagSeguro Digital Ltd. in its upcoming release. The company is forecasted to report an EPS of $0.41, showcasing a 13.89% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $996.93 million, up 6.38% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.66 per share and a revenue of $4.02 billion, representing changes of +16.9% and +9.83%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for PagSeguro Digital Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.6% decrease. PagSeguro Digital Ltd. presently features a Zacks Rank of #3 (Hold).

Investors should also note PagSeguro Digital Ltd.'s current valuation metrics, including its Forward P/E ratio of 5.46. This expresses a discount compared to the average Forward P/E of 12.65 of its industry.

Investors should also note that PAGS has a PEG ratio of 0.36 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial Transaction Services stocks are, on average, holding a PEG ratio of 0.8 based on yesterday's closing prices.

The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 32% echelons of all 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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