PagSeguro (PAGS) Drops 8.86% as Analysts Expect Q2 Earnings Fall

We recently published These 10 Stocks Fell Hard. Are You Holding Any? PagSeguro Digital Ltd. (NYSE:PAGS) is one of this week’s top performers.

Shares of PagSeguro Digital declined by 8.86 percent week-on-week to finish at $7.92 last Friday from $8.69 on July 11, as investors unloaded positions ahead of an expected earnings drop in its second quarter report.

In a market note earlier last week, Zacks Research said that PagSeguro Digital Ltd. (NYSE:PAGS) is projected to report an EPS of $0.3 or a 6.25 percent decline from the same period last year, but revenues are expected to go higher at $913.21 million or 4.44 percent higher year-on-year.

PagSeguro Digital Ltd. (NYSE:PAGS) currently holds a “hold” rating from Zacks Research. In the context of valuation, the company is currently trading at a Forward P/E ratio of 7.06, well below the industry average Forward P/E of 16.08, which means that the company is trading at a discount to its peers.

Last Wednesday, PagSeguro Digital Ltd. (NYSE:PAGS) also earned a conservative rating from JPMorgan, assigning a “neutral” stance on the company but with a higher price target of $13. The said figure marks a 49.6 percent upside from its latest closing price.

While we acknowledge the potential of PAGS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.