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Should Value Investors Buy PagSeguro Digital (PAGS) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is PagSeguro Digital (PAGS - Free Report) . PAGS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.65, which compares to its industry's average of 22.41. 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 9.58.
PAGS is also sporting a PEG ratio of 0.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PAGS's PEG compares to its industry's average PEG of 1.40. PAGS's PEG has been as high as 1.30 and as low as 0.61, with a median of 0.94, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PAGS has a P/S ratio of 1.18. This compares to its industry's average P/S of 3.23.
Finally, investors should note that PAGS has a P/CF ratio of 6.11. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PAGS's P/CF compares to its industry's average P/CF of 18.33. 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 6.26.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PagSeguro Digital is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PAGS feels like a great value stock at the moment.
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Should Value Investors Buy PagSeguro Digital (PAGS) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is PagSeguro Digital (PAGS - Free Report) . PAGS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.65, which compares to its industry's average of 22.41. 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 9.58.
PAGS is also sporting a PEG ratio of 0.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PAGS's PEG compares to its industry's average PEG of 1.40. PAGS's PEG has been as high as 1.30 and as low as 0.61, with a median of 0.94, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PAGS has a P/S ratio of 1.18. This compares to its industry's average P/S of 3.23.
Finally, investors should note that PAGS has a P/CF ratio of 6.11. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PAGS's P/CF compares to its industry's average P/CF of 18.33. 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 6.26.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PagSeguro Digital is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PAGS feels like a great value stock at the moment.