In the latest trading session, PagSeguro Digital Ltd. (PAGS) closed at $9.46, marking a -1.36% move from the previous day. This change lagged the S&P 500's daily gain of 0.17%. Meanwhile, the Dow experienced a drop of 0.48%, and the technology-dominated Nasdaq saw an increase of 0.46%.
The company's shares have seen an increase of 2.57% over the last month, surpassing the Business Services sector's loss of 3.15% and the S&P 500's gain of 2.38%.
Analysts and investors alike will be keeping a close eye on the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.35, indicating a 9.38% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $959.76 million, reflecting a 10.16% rise from the equivalent quarter last year.
PAGS's full-year Zacks Consensus Estimates are calling for earnings of $1.39 per share and revenue of $3.68 billion. These results would represent year-over-year changes of +14.88% and +5.45%, respectively.
Investors should also note any recent changes to analyst estimates for PagSeguro Digital Ltd. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.18% higher. PagSeguro Digital Ltd. presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, PagSeguro Digital Ltd. is holding a Forward P/E ratio of 6.92. Its industry sports an average Forward P/E of 13.09, so one might conclude that PagSeguro Digital Ltd. is trading at a discount comparatively.
Meanwhile, PAGS's PEG ratio is currently 0.49. 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. The Financial Transaction Services industry had an average PEG ratio of 1.06 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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