PagSeguro Digital Ltd. (PAGS) ended the recent trading session at $10.32, demonstrating a +2.79% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.48%.
The company's shares have seen an increase of 12.05% over the last month, surpassing the Business Services sector's loss of 0.31% and the S&P 500's gain of 2.87%.
Market participants will be closely following the financial results of PagSeguro Digital Ltd. in its upcoming release. It is anticipated that the company will report an EPS of $0.36, marking a 12.5% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $947.9 million, indicating a 8.8% upward movement from the same quarter last year.
PAGS's full-year Zacks Consensus Estimates are calling for earnings of $1.4 per share and revenue of $3.68 billion. These results would represent year-over-year changes of +15.7% and +5.35%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for PagSeguro Digital Ltd. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 has moved 8.53% higher. Right now, PagSeguro Digital Ltd. possesses a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, PagSeguro Digital Ltd. is currently exchanging hands at a Forward P/E ratio of 7.17. This indicates a discount in contrast to its industry's Forward P/E of 14.63.
It is also worth noting that PAGS currently has a PEG ratio of 0.5. 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. The average PEG ratio for the Financial Transaction Services industry stood at 1.19 at the close of the market yesterday.
