Should Value Investors Buy PagSeguro Digital (PAGS) Stock?

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.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.One stock to keep an eye on is PagSeguro Digital (PAGS). PAGS is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. PAGS is also sporting a PEG ratio of 0.62. 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 1.81. Over the last 12 months, PAGS's PEG has been as high as 0.69 and as low as 0.33, with a median of 0.48.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 0.91. This compares to its industry's average P/S of 2.71.If you're looking for another solid Financial Transaction Services value stock, take a look at WEX (WEX). WEX is a Zacks Rank of #2 (Buy) stock with a Value score of A.Shares of WEX are currently trading at a forward earnings multiple of 10.18 and a PEG ratio of 1.28 compared to its industry's P/E and PEG ratios of 21.73 and 1.81, respectively.Over the past year, WEX's P/E has been as high as 12.19, as low as 7.27, with a median of 10.13; its PEG ratio has been as high as 2.61, as low as 0.78, with a median of 1.29 during the same time period.Additionally, WEX has a P/B ratio of 5.99 while its industry's price-to-book ratio sits at 8.54. For WEX, this valuation metric has been as high as 6.84, as low as 3.96, with a median of 4.95 over the past year.These are only a few of the key metrics included in PagSeguro Digital and WEX strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PAGS and WEX look like an impressive value stock at the moment.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PagSeguro Digital Ltd. (PAGS): Free Stock Analysis Report WEX Inc. (WEX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks