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PagSeguro Digital Ltd. (PAGS) Stock Moves -1.02%: What You Should Know

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In the latest trading session, PagSeguro Digital Ltd. (PAGS - Free Report) closed at $7.75, marking a -1.02% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.6%. Elsewhere, the Dow lost 1.23%, while the tech-heavy Nasdaq lost 2.24%.

The company's stock has dropped by 16.79% in the past month, falling short of the Business Services sector's loss of 1.38% and the S&P 500's gain of 2.25%.

The upcoming earnings release of PagSeguro Digital Ltd. will be of great interest to investors. In that report, analysts expect PagSeguro Digital Ltd. to post earnings of $0.31 per share. This would mark 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.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.29 per share and revenue of $3.66 billion, indicating changes of +6.61% and +4.8%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for PagSeguro Digital Ltd. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 3.2% higher within the past month. Right now, PagSeguro Digital Ltd. possesses a Zacks Rank of #2 (Buy).

In terms of valuation, PagSeguro Digital Ltd. is currently trading at a Forward P/E ratio of 6.07. Its industry sports an average Forward P/E of 15.88, 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 0.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial Transaction Services was holding an average PEG ratio of 1.27 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 153, finds itself in the bottom 39% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PAGS in the coming trading sessions, be sure to utilize Zacks.com.

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