PagSeguro (PAGS) Drops 8.86% as Analysts Expect Q2 Earnings Fall

We recently published These 10 Stocks Fell Hard. Are You Holding Any? PagSeguro Digital Ltd. (NYSE:PAGS) is one of this week’s top performers.

Shares of PagSeguro Digital declined by 8.86 percent week-on-week to finish at $7.92 last Friday from $8.69 on July 11, as investors unloaded positions ahead of an expected earnings drop in its second quarter report.

In a market note earlier last week, Zacks Research said that PagSeguro Digital Ltd. (NYSE:PAGS) is projected to report an EPS of $0.3 or a 6.25 percent decline from the same period last year, but revenues are expected to go higher at $913.21 million or 4.44 percent higher year-on-year.

PagSeguro Digital Ltd. (NYSE:PAGS) currently holds a “hold” rating from Zacks Research. In the context of valuation, the company is currently trading at a Forward P/E ratio of 7.06, well below the industry average Forward P/E of 16.08, which means that the company is trading at a discount to its peers.

A businessperson standing in front of a brick-and-mortar establishment using a tablet to process an in-person payment.

Last Wednesday, PagSeguro Digital Ltd. (NYSE:PAGS) also earned a conservative rating from JPMorgan, assigning a “neutral” stance on the company but with a higher price target of $13. The said figure marks a 49.6 percent upside from its latest closing price.