PagSeguro Digital Ltd. (PAGS) Ascends But Remains Behind Market: Some Facts to Note
PagSeguro Digital Ltd. (PAGS) closed at $8.06 in the latest trading session, marking a +0.25% move from the prior day. The stock lagged the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 0.8%.
Prior to today's trading, shares of the company had lost 1.95% over the past month. This has lagged the Business Services sector's gain of 0.16% and the S&P 500's loss of 0.97% in that time.
Investors will be eagerly watching for the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.30, signifying a 7.14% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $788.99 million, indicating a 4.37% 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 $1.19 per share and revenue of $3.16 billion. These totals would mark changes of +9.17% and -1.27%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PagSeguro Digital Ltd. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, PagSeguro Digital Ltd. is carrying a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that PagSeguro Digital Ltd. has a Forward P/E ratio of 6.78 right now. This represents a discount compared to its industry's average Forward P/E of 17.38.
One should further note that PAGS currently holds 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. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.2.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
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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