PagSeguro Digital Ltd. (PAGS) ended the recent trading session at $7.06, demonstrating a -0.56% swing from the preceding day's closing price. This change lagged the S&P 500's 0.47% loss on the day. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq decreased by 0.51%.
Heading into today, shares of the company had gained 13.42% over the past month, outpacing the Business Services sector's gain of 3.17% and the S&P 500's gain of 1.67% in that time.
Investors will be eagerly watching for the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.29, showcasing a 12.12% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $827.6 million, indicating a 5.7% decline compared to the corresponding quarter of the prior 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, the Zacks Consensus EPS estimate has shifted 0.51% upward. PagSeguro Digital Ltd. presently features a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, PagSeguro Digital Ltd. is currently exchanging hands at a Forward P/E ratio of 6.24. Its industry sports an average Forward P/E of 14.18, 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 0.46. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial Transaction Services industry had an average PEG ratio of 1.21 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 131, placing it within the bottom 48% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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