PagSeguro Digital Ltd. (PAGS) ended the recent trading session at $8.16, demonstrating a +1.75% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.24%.
Shares of the company witnessed a loss of 14.41% over the previous month, trailing the performance of the Business Services sector with its loss of 0.55%, and the S&P 500's gain of 4.61%.
Investors will be eagerly watching for the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.31, indicating a 3.13% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $898.63 million, indicating a 2.77% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.29 per share and a revenue of $3.66 billion, representing changes of +6.61% and +4.8%, 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.2% increase. PagSeguro Digital Ltd. presently features a Zacks Rank of #2 (Buy).
With respect to valuation, PagSeguro Digital Ltd. is currently being traded at a Forward P/E ratio of 6.22. This valuation marks a discount compared to its industry average Forward P/E of 15.81.
It is also worth noting that PAGS currently has a PEG ratio of 0.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 159, this industry ranks in the bottom 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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PagSeguro Digital Ltd. (PAGS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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