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PagSeguro Digital Ltd. (PAGS) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest trading session, PagSeguro Digital Ltd. (PAGS - Free Report) closed at $8.20, marking a -1.2% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.08%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq gained 0.35%.

Shares of the company have depreciated by 11.23% over the course of the past month, underperforming the Business Services sector's loss of 3.73%, and the S&P 500's gain of 1.21%.

Analysts and investors alike will be keeping a close eye on the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.31, showcasing a 3.13% downward movement from the corresponding quarter of the prior 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.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.29 per share and revenue of $3.66 billion. These totals would mark changes of +6.61% and +4.8%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for PagSeguro Digital Ltd. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.2% higher. PagSeguro Digital Ltd. currently has a Zacks Rank of #2 (Buy).

With respect to valuation, PagSeguro Digital Ltd. is currently being traded at a Forward P/E ratio of 6.43. This represents a discount compared to its industry average Forward P/E of 14.91.

Investors should also note that PAGS has a PEG ratio of 0.56 right now. 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 Financial Transaction Services was holding an average PEG ratio of 1.26 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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