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Is PagSeguro Digital (PAGS) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is PagSeguro Digital (PAGS - Free Report) . PAGS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.55, which compares to its industry's average of 22.54. Over the last 12 months, PAGS's Forward P/E has been as high as 51.58 and as low as 9.53, with a median of 22.51.

Investors should also note that PAGS holds a PEG ratio of 0.63. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PAGS's PEG compares to its industry's average PEG of 1.19. PAGS's PEG has been as high as 1.34 and as low as 0.34, with a median of 0.74, all within the past year.

We should also highlight that PAGS has a P/B ratio of 2.64. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.76. Over the past 12 months, PAGS's P/B has been as high as 10.61 and as low as 1.70, with a median of 4.61.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PAGS has a P/S ratio of 2.66. This compares to its industry's average P/S of 3.84.

Finally, we should also recognize that PAGS has a P/CF ratio of 14.45. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PAGS's current P/CF looks attractive when compared to its industry's average P/CF of 17.70. Over the past year, PAGS's P/CF has been as high as 61.63 and as low as 9.30, with a median of 25.88.

Investors could also keep in mind Paysafe Limited (PSFE - Free Report) , an Financial Transaction Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Furthermore, Paysafe Limited holds a P/B ratio of 1.32 and its industry's price-to-book ratio is 5.76. PSFE's P/B has been as high as 1.64, as low as 0.24, with a median of 0.75 over the past 12 months.

These are just a handful of the figures considered in PagSeguro Digital and Paysafe Limited's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PAGS and PSFE is an impressive value stock right now.


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