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PagSeguro Digital Ltd. (PAGS) Stock Sinks As Market Gains: Here's Why
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In the latest trading session, PagSeguro Digital Ltd. (PAGS - Free Report) closed at $11.44, marking a -2.39% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.58%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.05%.
Shares of the company witnessed a gain of 24.68% over the previous month, beating the performance of the Business Services sector with its gain of 1.76%, and the S&P 500's gain of 0.97%.
The investment community will be closely monitoring the performance of PagSeguro Digital Ltd. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.41, reflecting a 13.89% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $996.2 million, up 6.3% from the year-ago period.
PAGS's full-year Zacks Consensus Estimates are calling for earnings of $1.65 per share and revenue of $4.02 billion. These results would represent year-over-year changes of +16.2% and +10.02%, respectively.
It is also important to note the recent changes to analyst estimates for PagSeguro Digital Ltd. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PagSeguro Digital Ltd. is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, PagSeguro Digital Ltd. is currently exchanging hands at a Forward P/E ratio of 7.1. For comparison, its industry has an average Forward P/E of 14.88, which means PagSeguro Digital Ltd. is trading at a discount to the group.
One should further note that PAGS currently holds a PEG ratio of 0.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 0.82.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 35% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Image: Bigstock
PagSeguro Digital Ltd. (PAGS) Stock Sinks As Market Gains: Here's Why
In the latest trading session, PagSeguro Digital Ltd. (PAGS - Free Report) closed at $11.44, marking a -2.39% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.58%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.05%.
Shares of the company witnessed a gain of 24.68% over the previous month, beating the performance of the Business Services sector with its gain of 1.76%, and the S&P 500's gain of 0.97%.
The investment community will be closely monitoring the performance of PagSeguro Digital Ltd. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.41, reflecting a 13.89% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $996.2 million, up 6.3% from the year-ago period.
PAGS's full-year Zacks Consensus Estimates are calling for earnings of $1.65 per share and revenue of $4.02 billion. These results would represent year-over-year changes of +16.2% and +10.02%, respectively.
It is also important to note the recent changes to analyst estimates for PagSeguro Digital Ltd. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PagSeguro Digital Ltd. is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, PagSeguro Digital Ltd. is currently exchanging hands at a Forward P/E ratio of 7.1. For comparison, its industry has an average Forward P/E of 14.88, which means PagSeguro Digital Ltd. is trading at a discount to the group.
One should further note that PAGS currently holds a PEG ratio of 0.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 0.82.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 35% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.