PagSeguro Digital Ltd. (PAGS) closed the most recent trading day at $9.04, moving -1.2% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 1.01%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 1.4%.
The company's shares have seen an increase of 3.74% over the last month, surpassing the Business Services sector's gain of 3.48% and the S&P 500's gain of 0.32%.
Investors will be eagerly watching for the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.4, showcasing a 17.65% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.05 billion, showing a 17.55% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.69 per share and a revenue of $4.25 billion, representing changes of +19.01% and +16.27%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for PagSeguro Digital Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.44% downward. PagSeguro Digital Ltd. presently features a Zacks Rank of #4 (Sell).
With respect to valuation, PagSeguro Digital Ltd. is currently being traded at a Forward P/E ratio of 5.42. This denotes a discount relative to the industry average Forward P/E of 11.78.
Also, we should mention that PAGS has a PEG ratio of 0.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 0.89 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 34% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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PagSeguro Digital Ltd. (PAGS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).