PagSeguro Digital Ltd. (PAGS) ended the recent trading session at $7.85, demonstrating a +0.13% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.39%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 0.2%.
Prior to today's trading, shares of the company had gained 19.33% over the past month. This has outpaced the Business Services sector's gain of 6.41% and the S&P 500's gain of 1.7% in that time.
The investment community will be paying close attention to the earnings performance of PagSeguro Digital Ltd. in its upcoming release. The company is predicted to post an EPS of $0.29, indicating a 12.12% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $827.6 million, reflecting a 5.7% fall from the equivalent quarter last year.
Investors should also note any recent changes to analyst estimates for PagSeguro Digital Ltd. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.51% higher. PagSeguro Digital Ltd. is currently a Zacks Rank #5 (Strong Sell).
With respect to valuation, PagSeguro Digital Ltd. is currently being traded at a Forward P/E ratio of 6.89. Its industry sports an average Forward P/E of 15.1, so one might conclude that PagSeguro Digital Ltd. is trading at a discount comparatively.
We can additionally observe that PAGS currently boasts a PEG ratio of 0.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PAGS's industry had an average PEG ratio of 1.35 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 139, positioning it in the bottom 45% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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