The most recent trading session ended with PagSeguro Digital Ltd. (PAGS) standing at $11.70, reflecting a -0.43% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 1.04%. On the other hand, the Dow registered a gain of 0.76%, and the technology-centric Nasdaq increased by 1.03%.

Shares of the company witnessed a loss of 6.37% over the previous month, trailing the performance of the Business Services sector with its loss of 5.54% and outperforming the S&P 500's loss of 6.74%.

The investment community will be paying close attention to the earnings performance of PagSeguro Digital Ltd. in its upcoming release. It is anticipated that the company will report an EPS of $0.35, marking a 34.62% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $721.04 million, indicating a 6.7% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.44 per share and revenue of $3.15 billion. These totals would mark changes of +32.11% and -1.63%, respectively, from last year.

Any recent changes to analyst estimates for PagSeguro Digital Ltd. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PagSeguro Digital Ltd. is currently a Zacks Rank #3 (Hold).

With respect to valuation, PagSeguro Digital Ltd. is currently being traded at a Forward P/E ratio of 8.15. This signifies a discount in comparison to the average Forward P/E of 14.98 for its industry.

One should further note that PAGS currently holds a PEG ratio of 0.5. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 0.97.

The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 34% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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