PagSeguro Digital Ltd. (PAGS) ended the recent trading session at $8.16, demonstrating a +1.75% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.24%.
Shares of the company witnessed a loss of 14.41% over the previous month, trailing the performance of the Business Services sector with its loss of 0.55%, and the S&P 500's gain of 4.61%.
Investors will be eagerly watching for the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.31, indicating a 3.13% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $898.63 million, indicating a 2.77% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.29 per share and a revenue of $3.66 billion, representing changes of +6.61% and +4.8%, respectively, from the prior year.
It is also important to note the 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 business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 witnessed a 3.2% increase. PagSeguro Digital Ltd. presently features a Zacks Rank of #2 (Buy).
With respect to valuation, PagSeguro Digital Ltd. is currently being traded at a Forward P/E ratio of 6.22. This valuation marks a discount compared to its industry average Forward P/E of 15.81.
It is also worth noting that PAGS currently has a PEG ratio of 0.55. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.
