Yahoo Finance Is PagSeguro Digital (PAGS) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is PagSeguro Digital (PAGS). PAGS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12, while its industry has an average P/E of 21.16. Over the past 52 weeks, PAGS's Forward P/E has been as high as 15.83 and as low as 7.61, with a median of 9.91.
We also note that PAGS holds a PEG ratio of 1.23. 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. PAGS's industry currently sports an average PEG of 1.35. Within the past year, PAGS's PEG has been as high as 1.25 and as low as 0.39, with a median of 0.68.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PAGS has a P/S ratio of 1.4. This compares to its industry's average P/S of 2.69.
Finally, investors will want to recognize that PAGS has a P/CF ratio of 7.95. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.85. Over the past year, PAGS's P/CF has been as high as 14.52 and as low as 4.95, with a median of 7.92.
Repay (RPAY) may be another strong Financial Transaction Services stock to add to your shortlist. RPAY is a # 2 (Buy) stock with a Value grade of A.
Furthermore, Repay holds a P/B ratio of 0.67 and its industry's price-to-book ratio is 6.13. RPAY's P/B has been as high as 1.40, as low as 0.41, with a median of 0.79 over the past 12 months.
These are only a few of the key metrics included in PagSeguro Digital and Repay strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PAGS and RPAY look like an impressive value stock at the moment.
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PagSeguro Digital Ltd. (PAGS) : Free Stock Analysis Report
Repay Holdings Corporation (RPAY) : Free Stock Analysis Report
