Company Overview - PagSeguro Digital Ltd. is part of the Business Services group, which consists of 258 companies and currently ranks 4 in the Zacks Sector Rank [2] - The company operates within the Financial Transaction Services industry, which includes 35 companies and is ranked 161 in the Zacks Industry Rank [6] Performance Metrics - Year-to-date, PagSeguro Digital Ltd. has returned approximately 27%, significantly outperforming the average gain of 1.6% in the Business Services group [4] - The Zacks Consensus Estimate for PagSeguro's full-year earnings has increased by 1.9% over the past quarter, indicating improved analyst sentiment [4] Comparative Analysis - Another company in the Business Services sector, QXO, Inc., has shown a year-to-date increase of 39.9% and has a consensus EPS estimate that has risen by 411.1% over the last three months [5] - The Financial Transaction Services industry, where PagSeguro operates, has gained an average of 4.3% this year, indicating that PagSeguro is performing better than its industry peers [6]

Core Insights - Investors are comparing PagSeguro Digital Ltd. (PAGS) and Corpay (CPAY) to determine which stock offers better value opportunities [1] Valuation Metrics - PAGS has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while CPAY has a Zacks Rank of 3 (Hold) [3] - PAGS has a forward P/E ratio of 6.47, significantly lower than CPAY's forward P/E of 15.72 [5] - The PEG ratio for PAGS is 0.57, while CPAY's PEG ratio is 1.19, suggesting PAGS is more favorably valued in terms of expected earnings growth [5] - PAGS has a P/B ratio of 1.03, compared to CPAY's P/B of 6.65, indicating PAGS is undervalued relative to its book value [6] - Overall, PAGS has a Value grade of A, while CPAY has a Value grade of C, highlighting PAGS as the superior value option [6]

Core Insights - PagSeguro Digital Ltd. has consistently surpassed earnings estimates, averaging a 12.07% beat over the last two quarters [1][5] - The company reported earnings of $0.29 per share for the most recent quarter, missing the expectation of $0.31 per share, but still achieving a surprise of 6.90% [2] - In the previous quarter, PagSeguro exceeded the consensus estimate of $0.29 per share by reporting $0.34 per share, resulting in a surprise of 17.24% [2] Earnings Estimates and Predictions - Recent changes in earnings estimates for PagSeguro Digital have been favorable, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8] - The current Earnings ESP for PagSeguro is +9.09%, suggesting that analysts are optimistic about the company's earnings prospects [8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6][8] Importance of Earnings ESP - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7] - A positive Earnings ESP combined with a strong Zacks Rank indicates a higher probability of an earnings beat, while a negative Earnings ESP may reduce predictive power but does not necessarily indicate a miss [8][10]

Core Viewpoint - The article highlights three stocks with a buy rank and strong value characteristics, focusing on PagSeguro Digital as a notable investment opportunity [1] Company Summary - PagSeguro Digital (PAGS) provides financial technology solutions and services primarily for micro-merchants and small to medium-sized businesses in Brazil and internationally [1] - The company holds a Zacks Rank 1 (Strong Buy), indicating strong investor confidence [1] - Over the last 60 days, the Zacks Consensus Estimate for PagSeguro's current year earnings has increased by 1.6% [1]

Company Performance - PagSeguro Digital Ltd. closed at $8.43, reflecting a -1.86% change from the previous day, underperforming the S&P 500 which gained 0.32% [1] - Over the past month, shares of PagSeguro Digital Ltd. have decreased by 7.24%, compared to a loss of 1.01% in the Business Services sector and a gain of 4.51% in the S&P 500 [1] Upcoming Earnings - The upcoming earnings release is expected to show an EPS of $0.3, which represents a 6.25% decline from the same quarter last year [2] - Revenue is projected to be $913.21 million, indicating a 4.44% increase from the previous year [2] Full Year Estimates - For the full year, analysts expect earnings of $1.22 per share and revenue of $3.7 billion, reflecting changes of +0.83% and +5.98% respectively from last year [3] - Recent revisions in analyst estimates suggest a positive outlook for the business [3] Valuation Metrics - PagSeguro Digital Ltd. is currently trading at a Forward P/E ratio of 7.06, significantly lower than the industry average of 16.08, indicating a discount [6] - The company has a PEG ratio of 0.63, compared to the Financial Transaction Services industry's average PEG ratio of 1.27 [7] Industry Context - The Financial Transaction Services industry is part of the Business Services sector, which holds a Zacks Industry Rank of 91, placing it in the top 37% of over 250 industries [7] - The Zacks Rank system indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

In the latest trading session, PagSeguro Digital Ltd. (PAGS) closed at $9.37, marking a -2.8% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.8%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.97%. The stock of company has risen by 11.06% in the past month, leading the Business Services sector's loss of 0.89% and the S&P 500's gain of 5.12%.Analysts and investors alike will be keeping a close eye on the performance of PagSeguro Digital Ltd. ...

Core Insights - The article compares two financial transaction services companies, PagSeguro Digital Ltd. (PAGS) and DLocal (DLO), to determine which is the better undervalued stock option for investors [1] Valuation Metrics - PAGS has a forward P/E ratio of 7.65, significantly lower than DLO's forward P/E of 17.66, indicating that PAGS may be undervalued [5] - The PEG ratio for PAGS is 0.68, while DLO's PEG ratio is 1.05, suggesting that PAGS has a better growth outlook relative to its price [5] - PAGS has a P/B ratio of 1.25 compared to DLO's P/B of 5.75, further indicating that PAGS is more attractively valued based on its book value [6] Investment Ratings - PAGS currently holds a Zacks Rank of 2 (Buy), while DLO has a Zacks Rank of 3 (Hold), suggesting a stronger earnings outlook for PAGS [3] - Based on the valuation metrics and earnings outlook, PAGS is rated with a Value grade of A, whereas DLO has a Value grade of C, reinforcing PAGS as the superior value option [6]

Core Viewpoint - The article emphasizes the importance of value investing and highlights specific stocks, Global Blue Group and PagSeguro Digital, as strong value picks based on their financial metrics and Zacks Rank [2][8]. Group 1: Global Blue Group (GB) - Global Blue Group has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential as a value stock [4]. - The stock is currently trading with a P/E ratio of 17.33, significantly lower than its industry's average P/E of 22.16 [4]. - GB's P/CF ratio stands at 10.66, which is attractive compared to the industry's average P/CF of 17.51, suggesting it may be undervalued [5]. Group 2: PagSeguro Digital (PAGS) - PagSeguro Digital also holds a Zacks Rank of 2 (Buy) and a Value grade of A, making it another appealing value investment [6]. - The company has a Forward P/E ratio of 6.86 and a PEG ratio of 0.61, both of which are favorable compared to the industry's average P/E of 22.16 and PEG ratio of 1.63 [6]. - PAGS's price-to-earnings ratio has fluctuated between 4.84 and 9.72 over the past year, with a median of 6.55, indicating potential undervaluation [7].

Core Viewpoint - PagSeguro Digital announced a special cash dividend of $0.12 per share, leading to a significant increase in its stock price, closing nearly 13% higher, outperforming the S&P 500 index [1][2]. Dividend Announcement - The special dividend of $0.12 per share will be paid on August 15 to investors of record as of July 16 [2]. - PagSeguro plans to make two additional special dividend payouts of the same amount within the next three quarters [4]. Dividend Policy - The company aims to establish an annual dividend policy corresponding to approximately 10% of its distributable net income [5]. - PagSeguro declared its first regular dividend of $0.14 per share in mid-May, which was paid out earlier this month [4]. Market Position - The Brazilian fintech sector has significant growth potential, supported by PagSeguro's innovative offerings in an under-banked market [6]. - The new dividend policy enhances the attractiveness of PagSeguro's stock, which is already supported by solid financial performance and consistent profitability [6].

Financial Highlights - PagSeguro Digital Ltd's net revenue for Q1 2025 reached R$49 billion, a 13% year-over-year increase[17] - The company's total payment volume (TPV) for Q1 2025 was R$129 billion, up 16% year-over-year[17] - Net income for Q1 2025 was R$554 million, representing a 6% year-over-year increase[17] - The expanded credit portfolio grew to R$46 billion, a 34% increase year-over-year[19] - Total funding increased to R$40 billion, a 24% year-over-year increase[19] Operational Highlights - PagSeguro Digital Ltd had 320 million total clients in Q1 2025, a 2% year-over-year increase[17] - The company repurchased R$11 billion worth of shares LTM and R$353 million YTD (Apr-25)[20] - Active banking clients increased by 5% year-over-year[54] Business Performance - Banking revenue increased by 60% year-over-year, contributing to over 22% of total gross profit[128, 92] - Total deposits reached R$339 billion, an 11% year-over-year increase[39, 76] - Payroll loans increased by 63% year-over-year, reaching R$27 billion[39, 82] Future Outlook - The company is on track to deliver its 2025 guidance[128] - PagSeguro Digital Ltd expects to pay a cash dividend corresponding to approximately 10% of its net income on an annual basis[118]