In the latest close session, PagSeguro Digital Ltd. (PAGS) was down 1.2% at $8.20. The stock trailed the S&P 500, which registered a daily loss of 0.08%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq added 0.35%.
Prior to today's trading, shares of the company had lost 11.23% lagged the Business Services sector's loss of 3.73% and the S&P 500's gain of 1.21%.
The upcoming earnings release of PagSeguro Digital Ltd. will be of great interest to investors. On that day, PagSeguro Digital Ltd. is projected to report earnings of $0.31 per share, which would represent a year-over-year decline of 3.13%. In the meantime, our current consensus estimate forecasts the revenue to be $898.63 million, indicating a 2.77% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $1.29 per share and a revenue of $3.66 billion, demonstrating changes of +6.61% and +4.8%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for PagSeguro Digital Ltd. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.2% higher. Currently, PagSeguro Digital Ltd. is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, PagSeguro Digital Ltd. is currently trading at a Forward P/E ratio of 6.43. This signifies a discount in comparison to the average Forward P/E of 14.91 for its industry.
We can also see that PAGS currently has a PEG ratio of 0.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.26 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% of all 250+ industries.
