PagSeguro Digital Ltd. Sees Small Gains Amidst Mixed Sector Performance
PagSeguro Digital Ltd. (PAGS) ended the latest trading session at $8.12, recording a gain of +1.37% from the previous day. This increase was higher than the S&P 500’s daily gain of 0.38%, and the company’s performance also outpaced the Dow’s rise of 0.59% while the Nasdaq’s increase was more modest at 0.09%.
However, when looking at the broader picture, PagSeguro’s shares have declined by 1.72% over the past month. This contrasts sharply with the Business Services sector, which has seen an impressive gain of 11.43%, and the S&P 500, which has increased by 4.9% over the same period.
Upcoming Earnings Report and Expectations
Investors and analysts are eager for PagSeguro Digital Ltd.’s upcoming earnings report. The company is expected to announce an earnings per share (EPS) of $0.30, reflecting a 7.14% increase from the same quarter last year. Revenue is projected to be $788.99 million, though this would signify a decrease of 4.37% compared to the previous year.
For the entire fiscal year, Zacks Consensus Estimates predict earnings of $1.19 per share and revenue of $3.16 billion. This represents positive growth of +9.17% in earnings but a slight dip of -1.27% in revenue compared to last year.
Analyst Estimate Revisions Signal Potential
Recent adjustments in analyst estimates for PagSeguro Digital Ltd. are noteworthy. These revisions demonstrate the changing dynamics in the company’s short-term business landscape. Positive adjustments indicate growing optimism among analysts regarding the company’s performance and profitability.
Our research indicates that these estimate changes can be correlated with stock movements. To better understand these relationships, we use the Zacks Rank system, which integrates such changes into a comprehensive rating model.
The Zacks Rank System and Current Position
The Zacks Rank system operates on a scale from #1 (Strong Buy) to #5 (Strong Sell). Historically, stocks ranked #1 have averaged an annual return of +25% since 1988, emphasizing the effectiveness of this model. Currently, PagSeguro Digital Ltd. holds a Zacks Rank of #3 (Hold), and over the past 30 days, our consensus EPS forecast has remained unchanged.
Valuation Metrics Show Discount
Taking a look at its valuation, PagSeguro Digital Ltd. presents a Forward P/E ratio of 6.75, which is significantly below the average Forward P/E of 17.31 for its industry.
The company also has a PEG ratio of 0.41. This ratio, similar to the P/E ratio, considers expected earnings growth as well. Comparatively, the Financial Transaction Services industry had an average PEG ratio of 1.3 at the last closing price.
The Financial Transaction Services sector is part of the broader Business Services industry, which currently holds a Zacks Industry Rank of 84, placing it in the top 34% of more than 250 industries.
This industry ranking measures the average Zacks Rank within individual stock groups, demonstrating that the top half of rated industries tend to outperform the lower half significantly.
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For those who follow financial metrics and industry insights, be sure to visit Zacks.com for the latest updates on stock performance and analysis.
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PagSeguro Digital Ltd. (PAGS): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
