PagSeguro Digital Ltd. (PAGS) ended the recent trading session at $10.86, demonstrating a -4.23% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.51% for the day. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq lost 1.51%.
The company's stock has climbed by 14.55% in the past month, exceeding the Business Services sector's loss of 4.68% and the S&P 500's gain of 0.93%.
Market participants will be closely following the financial results of PagSeguro Digital Ltd. in its upcoming release. The company is forecasted to report an EPS of $0.42, showcasing a 23.53% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.02 billion, showing a 16.84% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.46 per share and a revenue of $3.85 billion, representing changes of +20.66% and 0%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PagSeguro Digital Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 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 moved 2.01% higher. PagSeguro Digital Ltd. presently features a Zacks Rank of #3 (Hold).
Investors should also note PagSeguro Digital Ltd.'s current valuation metrics, including its Forward P/E ratio of 6.86. This expresses a discount compared to the average Forward P/E of 10.26 of its industry.
Investors should also note that PAGS has a PEG ratio of 0.47 right now. 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 0.88 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 36% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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