PagSeguro Digital Ltd. (PAGS) closed at $10.03 in the latest trading session, marking a +1.31% move from the prior day. This change outpaced the S&P 500's 0.58% gain on the day. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 0.55%.
Prior to today's trading, shares of the company had gained 29.75% over the past month. This has outpaced the Business Services sector's loss of 2.56% and the S&P 500's loss of 0.84% in that time.
The upcoming earnings release of PagSeguro Digital Ltd. will be of great interest to investors. The company is predicted to post an EPS of $0.29, indicating a 12.12% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $828.66 million, indicating a 4.74% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.25 per share and revenue of $3.6 billion. These totals would mark changes of +3.31% and +3.18%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for PagSeguro Digital Ltd. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.12% downward. PagSeguro Digital Ltd. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, PagSeguro Digital Ltd. is presently being traded at a Forward P/E ratio of 7.95. This valuation marks a discount compared to its industry's average Forward P/E of 14.3.
We can additionally observe that PAGS currently boasts a PEG ratio of 0.7. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.23.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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