PagSeguro Digital Ltd. (PAGS) closed at $9.75 in the latest trading session, marking a -1.02% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 3.26% for the day. Elsewhere, the Dow gained 2.81%, while the tech-heavy Nasdaq added 4.35%.
Shares of the company witnessed a gain of 17.4% over the previous month, beating the performance of the Business Services sector with its gain of 7.61% and the S&P 500's gain of 3.78%.
Investors will be eagerly watching for the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.29, marking a 12.12% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $827.19 million, indicating a 4.91% decline compared to the corresponding quarter of the prior year.
PAGS's full-year Zacks Consensus Estimates are calling for earnings of $1.24 per share and revenue of $3.6 billion. These results would represent year-over-year changes of +2.48% and +3.01%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PagSeguro Digital Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 moved 0.6% lower. As of now, PagSeguro Digital Ltd. holds a Zacks Rank of #3 (Hold).
From a valuation perspective, PagSeguro Digital Ltd. is currently exchanging hands at a Forward P/E ratio of 7.96. Its industry sports an average Forward P/E of 14.59, so one might conclude that PagSeguro Digital Ltd. is trading at a discount comparatively.
One should further note that PAGS currently holds a PEG ratio of 0.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Financial Transaction Services industry stood at 1.19 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 30% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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