Why PagSeguro Digital (PAGS) Might be Well Poised for a Surge

PagSeguro Digital Ltd. (PAGS) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.For PagSeguro Digital, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.Current-Quarter Estimate RevisionsThe earnings estimate of $0.29 per share for the current quarter represents a change of -12.12% from the number reported a year ago.Over the last 30 days, the Zacks Consensus Estimate for PagSeguro Digital has increased 14.71% because two estimates have moved higher compared to no negative revisions.Current-Year Estimate RevisionsThe company is expected to earn $1.23 per share for the full year, which represents a change of +1.65% from the prior-year number.There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, two estimates have moved up for PagSeguro Digital versus no negative revisions. This has pushed the consensus estimate 6.41% higher.Favorable Zacks RankThanks to promising estimate revisions, PagSeguro Digital currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.Bottom LineInvestors have been betting on PagSeguro Digital because of its solid estimate revisions, as evident from the stock's 12.2% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks