PagSeguro Digital Ltd. (PAGS) closed at $11.17 in the latest trading session, marking a -1.24% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.01%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq lost 0.16%.
Prior to today's trading, shares of the company had gained 11.65% outpaced the Business Services sector's loss of 7% and the S&P 500's loss of 0.28%.
Analysts and investors alike will be keeping a close eye on the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.42, marking a 23.53% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.02 billion, indicating a 16.84% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.46 per share and revenue of $3.85 billion, indicating changes of +20.66% and +10.25%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for PagSeguro Digital Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.01% higher within the past month. PagSeguro Digital Ltd. is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, PagSeguro Digital Ltd. is holding a Forward P/E ratio of 6.84. This signifies a discount in comparison to the average Forward P/E of 11.71 for its industry.
We can additionally observe that PAGS currently boasts a PEG ratio of 0.47. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial Transaction Services industry currently had an average PEG ratio of 1.03 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 140, positioning it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many 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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