PagSeguro DigitalNYSE: PAGS

In the most recent trading session, PagSeguro Digital Ltd. (PAGS) closed at $8.06, indicating a +0.25% shift from the previous trading day.

PagSeguro Digital Ltd. (PAGS) concluded the recent trading session at $8.27, signifying a -0.24% move from its prior day's close.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Despite robust growth in revenue and earnings re-acceleration, PagSeguro's stock remains sensitive to high-interest rates, currently at 10.5%, impacting the stock's sentiment. The company significantly boosted FY2024 TPV guidance by 10%, driven by strong merchant services demand and a focus on medium and large enterprises. The management indicated that TPV growth in 2Q FY2024 was 3 times higher than the industry's growth, implying that the company is gaining market share.

Some LatAm fintechs offer growth potential with cheap valuations, such as Nu Holdings, but alternatives like PagSeguro have more attractive valuations. PagSeguro's Q2 earnings show strong momentum with revenue growth, operational indicators, and credit portfolio improvements, leading to increased net income and revised guidance. Despite risks including macroeconomic, exchange rate, and competition, PagSeguro's valuation remains a strong aspect of the investment thesis, offering potential upside for investors.

PagSeguro Digital Ltd. (PAGS) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.31 per share.

In the latest trading session, PagSeguro Digital Ltd. (PAGS) closed at $13.35, marking a +1.14% move from the previous day.

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.

Investors interested in Financial Transaction Services stocks are likely familiar with PagSeguro Digital Ltd. (PAGS) and RB Global (RBA).