We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing PagSeguro Digital (PAGS) Right Now?
Read MoreHide Full Article
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.74, which compares to its industry's average of 21.91. Over the past year, PAGS's Forward P/E has been as high as 12.20 and as low as 6.33, with a median of 9.12.
We also note that PAGS holds a PEG ratio of 0.53. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PAGS's PEG compares to its industry's average PEG of 1.36. Within the past year, PAGS's PEG has been as high as 1.30 and as low as 0.44, with a median of 0.77.
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 1.31. This compares to its industry's average P/S of 2.57.
Finally, we should also recognize that PAGS has a P/CF ratio of 6.76. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.62. Over the past 52 weeks, PAGS's P/CF has been as high as 7.65 and as low as 3.97, with a median of 6.14.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing PagSeguro Digital (PAGS) Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.74, which compares to its industry's average of 21.91. Over the past year, PAGS's Forward P/E has been as high as 12.20 and as low as 6.33, with a median of 9.12.
We also note that PAGS holds a PEG ratio of 0.53. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PAGS's PEG compares to its industry's average PEG of 1.36. Within the past year, PAGS's PEG has been as high as 1.30 and as low as 0.44, with a median of 0.77.
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 1.31. This compares to its industry's average P/S of 2.57.
Finally, we should also recognize that PAGS has a P/CF ratio of 6.76. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.62. Over the past 52 weeks, PAGS's P/CF has been as high as 7.65 and as low as 3.97, with a median of 6.14.
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.