PagSeguro Digital Ltd. (PAGS) closed at $10.11 in the latest trading session, marking a -1.37% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.49%. Elsewhere, the Dow saw a downswing of 0.05%, while the tech-heavy Nasdaq depreciated by 0.9%.
The stock of company has risen by 5.56% in the past month, leading the Business Services sector's gain of 5.05% and undershooting the S&P 500's gain of 12.8%.
Investors will be eagerly watching for the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. In that report, analysts expect PagSeguro Digital Ltd. to post earnings of $0.4 per share. This would mark year-over-year growth of 29.03%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.01 billion, indicating a 22.01% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.66 per share and a revenue of $4.12 billion, indicating changes of +16.9% and +12.65%, respectively, from the former 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 0.3% lower. Currently, PagSeguro Digital Ltd. is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, PagSeguro Digital Ltd. is currently exchanging hands at a Forward P/E ratio of 6.17. This represents a discount compared to its industry average Forward P/E of 12.01.
We can additionally observe that PAGS currently boasts a PEG ratio of 0.41. 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. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 0.86.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 90, putting it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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PagSeguro Digital Ltd. (PAGS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).