PagSeguro Digital Ltd. (PAGS) closed at $9.62 in the latest trading session, marking a -2.83% move from the prior day. This move lagged the S&P 500's daily loss of 0.34%. At the same time, the Dow lost 0.94%, and the tech-heavy Nasdaq gained 0.16%.
The company's shares have seen a decrease of 0.1% over the last month, not keeping up with the Business Services sector's gain of 2.46% and the S&P 500's gain of 1.19%.
The investment community will be paying close attention to the earnings performance of PagSeguro Digital Ltd. in its upcoming release. On that day, PagSeguro Digital Ltd. is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 14.71%. Our most recent consensus estimate is calling for quarterly revenue of $1 billion, up 14.8% from the year-ago period.
PAGS's full-year Zacks Consensus Estimates are calling for earnings of $1.36 per share and revenue of $3.77 billion. These results would represent year-over-year changes of +12.4% and 0%, respectively.
It is also important to note the recent changes to analyst estimates for PagSeguro Digital Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.47% decrease. PagSeguro Digital Ltd. is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, PagSeguro Digital Ltd. is currently being traded at a Forward P/E ratio of 6.56. This expresses a discount compared to the average Forward P/E of 12.8 of its industry.
We can additionally observe that PAGS currently boasts a PEG ratio of 0.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 0.93.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 171, this industry ranks in the bottom 31% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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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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