PagSeguro Digital Ltd. (PAGS) Falls More Steeply Than Broader Market: What Investors Need to Know

In the latest close session, PagSeguro Digital Ltd. (PAGS) was down 2.39% at $9.39. The stock's change was less than the S&P 500's daily loss of 1.51%. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 2.01%.

The company's shares have seen a decrease of 12.94% over the last month, not keeping up with the Business Services sector's loss of 4.08% and the S&P 500's loss of 3.63%.

The investment community will be paying close attention to the earnings performance of PagSeguro Digital Ltd. in its upcoming release. The company's upcoming EPS is projected at $0.4, signifying a 29.03% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $984.75 million, up 19.06% from the year-ago period.

PAGS's full-year Zacks Consensus Estimates are calling for earnings of $1.65 per share and revenue of $3.98 billion. These results would represent year-over-year changes of +16.2% and +8.87%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for PagSeguro Digital Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. PagSeguro Digital Ltd. is currently a Zacks Rank #3 (Hold).

Investors should also note PagSeguro Digital Ltd.'s current valuation metrics, including its Forward P/E ratio of 5.82. This valuation marks a discount compared to its industry average Forward P/E of 11.

It is also worth noting that PAGS currently has a PEG ratio of 0.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 0.78 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 34% of all 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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