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Should Value Investors Buy PagSeguro Digital (PAGS) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.42, which compares to its industry's average of 24.34. Over the past year, PAGS's Forward P/E has been as high as 12.28 and as low as 6.33, with a median of 9.46.
We also note that PAGS holds a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PAGS's industry has an average PEG of 1.54 right now. PAGS's PEG has been as high as 1.30 and as low as 0.67, with a median of 0.94, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.41. This compares to its industry's average P/S of 3.
Finally, investors should note that PAGS has a P/CF ratio of 7.26. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.34. Over the past 52 weeks, PAGS's P/CF has been as high as 7.86 and as low as 3.97, with a median of 6.11.
Value investors will likely look at more than just these metrics, but the above data helps show that PagSeguro Digital is likely undervalued currently. And when considering the strength of its earnings outlook, PAGS sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy PagSeguro Digital (PAGS) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.42, which compares to its industry's average of 24.34. Over the past year, PAGS's Forward P/E has been as high as 12.28 and as low as 6.33, with a median of 9.46.
We also note that PAGS holds a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PAGS's industry has an average PEG of 1.54 right now. PAGS's PEG has been as high as 1.30 and as low as 0.67, with a median of 0.94, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.41. This compares to its industry's average P/S of 3.
Finally, investors should note that PAGS has a P/CF ratio of 7.26. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.34. Over the past 52 weeks, PAGS's P/CF has been as high as 7.86 and as low as 3.97, with a median of 6.11.
Value investors will likely look at more than just these metrics, but the above data helps show that PagSeguro Digital is likely undervalued currently. And when considering the strength of its earnings outlook, PAGS sticks out at as one of the market's strongest value stocks.