PagSeguro Digital Ltd. (PAGS) Rises But Trails Market: What Investors Should Know

Core Viewpoint - PagSeguro Digital Ltd. is experiencing a mixed performance in the market, with upcoming earnings expected to show growth in both EPS and revenue compared to the previous year [2][3]. Company Performance - In the latest trading session, PagSeguro Digital Ltd. (PAGS) increased by 1.14% to $8.85, underperforming the S&P 500's gain of 1.56% [1]. - Over the past month, shares of PagSeguro have declined by 8.28%, which is worse than the Business Services sector's loss of 3.52% and the S&P 500's gain of 0.41% [1]. Earnings Estimates - Analysts predict PagSeguro will report an EPS of $0.35, reflecting a growth of 9.38% year-over-year [2]. - Revenue is expected to reach $967.82 million, indicating an 11.08% increase compared to the same quarter last year [2]. Annual Projections - For the annual period, Zacks Consensus Estimates forecast earnings of $1.38 per share and revenue of $3.68 billion, representing increases of 14.05% and 5.35% respectively from the previous year [3]. Analyst Sentiment - Recent adjustments to analyst estimates suggest a positive outlook for PagSeguro, indicating confidence in the company's performance and profit potential [3]. Valuation Metrics - PagSeguro Digital Ltd. is currently trading at a Forward P/E ratio of 6.33, which is significantly lower than the industry average of 14.35 [6]. - The company has a PEG ratio of 0.44, compared to the Financial Transaction Services industry's average PEG ratio of 1.15 [7]. Industry Context - The Financial Transaction Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 30, placing it in the top 13% of over 250 industries [8].