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PagSeguro Digital Ltd. (PAGS) Suffers a Larger Drop Than the General Market: Key Insights

In the latest market close, PagSeguro Digital Ltd. (PAGS) reached $11.67, with a -1.35% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.58%. Elsewhere, the Dow saw a downswing of 0.12%, while the tech-heavy Nasdaq depreciated by 1.15%.

The the stock of company has fallen by 14.65% in the past month, lagging the Business Services sector's loss of 4.36% and the S&P 500's loss of 1.09%.

The upcoming earnings release of PagSeguro Digital Ltd. will be of great interest to investors. It is anticipated that the company will report an EPS of $0.30, marking a 30.43% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $738.95 million, up 2.37% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.30 per share and revenue of $3.26 billion, which would represent changes of +19.27% and +1.84%, respectively, from the prior year.

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Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for PagSeguro Digital Ltd. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been a 0.97% rise in the Zacks Consensus EPS estimate. PagSeguro Digital Ltd. presently features a Zacks Rank of #1 (Strong Buy).

In the context of valuation, PagSeguro Digital Ltd. is at present trading with a Forward P/E ratio of 9.14. Its industry sports an average Forward P/E of 14.43, so one might conclude that PagSeguro Digital Ltd. is trading at a discount comparatively.

It's also important to note that PAGS currently trades at a PEG ratio of 0.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.13.

The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 26% echelons of all 250+ industries.

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

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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PagSeguro Digital Ltd. (PAGS) : Free Stock Analysis Report

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