10 Stocks Under $10 With High Potential

3. PagSeguro Digital Ltd. (NYSE:PAGS)

Share Price: $8.61

Analyst Upside Potential: 85.34%

PagSeguro Digital Ltd. (NYSE:PAGS) is a digital finance company based in Brazil. It offers a free digital account called PagBank, moreover, it also provides businesses with point-of-sale (POS) devices and mobile POS (mPOS) systems to help them with payment solutions.

If you are looking for a profitable company that is cheap and has a high growth potential, PagSeguro Digital Ltd. (NYSE:PAGS) might be just the right fit for you. In the second quarter of 2024, revenue for the company grew 19% in local currency and gross margins for the quarter were high at 40%. Net income was also not shy it improved 31% year-over-year. The improved financial figures were on the back of strong growth in its client base indicating that the company is growing at a fast pace.

The investment case for the company becomes ever more irresistible if we go a little back in time. Since its IPO there has not been a single year of loss for the company. For instance, its 2023 revenues were up 9% from the previous year, whereas its 2022 revenues were up 47% from 2021. What’s more impressive is its growing market share, which has grown from 1% in 2016 to 11% in 2022.

PagSeguro Digital Ltd. (NYSE:PAGS) is also trading at a cheap valuation with forward P/E at 6.68 and its earnings are expected to grow by 16% during the year. 19 analysts have a consensus Buy rating on the stock and their 12-month median price target represents an upside of 85% from current levels.