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PagSeguro Digital Ltd. (PAGS) Surpasses Market Returns: Some Facts Worth Knowing

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PagSeguro Digital Ltd. (PAGS - Free Report) closed at $11.12 in the latest trading session, marking a +2.68% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.33%. On the other hand, the Dow registered a gain of 1.08%, and the technology-centric Nasdaq increased by 0.08%.

Prior to today's trading, shares of the company had gained 14.36% outpaced the Business Services sector's loss of 1.1% and the S&P 500's gain of 1.41%.

Market participants will be closely following the financial results of PagSeguro Digital Ltd. in its upcoming release. In that report, analysts expect PagSeguro Digital Ltd. to post earnings of $0.41 per share. This would mark year-over-year growth of 13.89%. Simultaneously, our latest consensus estimate expects the revenue to be $996.2 million, showing a 6.3% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.65 per share and revenue of $4.02 billion. These totals would mark changes of +16.2% and +10.02%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for PagSeguro Digital Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.45% lower. Currently, PagSeguro Digital Ltd. is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that PagSeguro Digital Ltd. has a Forward P/E ratio of 6.56 right now. This indicates a discount in contrast to its industry's Forward P/E of 14.32.

We can additionally observe that PAGS currently boasts a PEG ratio of 0.43. 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. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 0.78.

The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 178, this industry ranks in the bottom 28% of all industries, numbering over 250.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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