PagSeguro Digital Ltd. (PAGS – Free Report) closed the most recent trading day at $6.36, moving +1.44% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 1.54% for the day. Meanwhile, the Dow experienced a drop of 1.63%, and the technology-dominated Nasdaq saw a decrease of 1.63%.
Shares of the company have depreciated by 9.78% over the course of the past month, underperforming the Business Services sector’s loss of 3.87% and the S&P 500’s loss of 2.2%.
Investors will be eagerly watching for the performance of PagSeguro Digital Ltd. in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $0.30, reflecting a 9.09% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $830.77 million, reflecting a 5.34% fall from the equivalent quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PagSeguro Digital Ltd. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.41% lower. Currently, PagSeguro Digital Ltd. is carrying a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that PagSeguro Digital Ltd. has a Forward P/E ratio of 5.34 right now. This signifies a discount in comparison to the average Forward P/E of 13.97 for its industry.
We can additionally observe that PAGS currently boasts a PEG ratio of 0.39. 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. By the end of yesterday’s trading, the Financial Transaction Services industry had an average PEG ratio of 1.2.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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