8 Most Promising Stocks to Buy According to Wall Street Analysts

4. PagSeguro Digital Ltd. (NYSE:PAGS)

Analyst Upside Potential: 90.74%

Number of Hedge Funds: 32

PagSeguro Digital (NYSE:PAGS) provides financial technology solutions focused primarily on individual entrepreneurs, consumers, small companies, micro-merchants, and medium-sized companies in Brazil. It boasts an end-to-end digital ecosystem that allows its merchants to accept payments and manage and grow their businesses. It offers a two-sided ecosytem, providing payments and banking experience through a single interface through one platform, one app, and one customer support.

The company’s digital banking ecosystem features its PagBank digital account, which works under the brand PagBank and offers around 13 cash-out and 40 cash-in methods. Its end-to-end payments ecosystem allows its customers to accept an array of in-person and online payment methods.

PagSeguro (NYSE:PAGS) experienced an all-time high in key financial metrics in Q2, including net income and revenues. Total revenue increased 19% year over year, primarily due to revenue growth in all client segments and a strong TPV. Its gross profit margin ended the quarter close to 40%, which was in line with the company’s guidance and 86 basis points higher than Q2 2023. It reached 31.6 million clients by the end of June, with an increase of 2 million in the last 12 months.

The company also reached an all-time deposit level of BRL 34.2 billion ($6.13 billion), undergoing an 87% increase year over year. This growth shows the power of the company’s value proposition, which has contributed to improvement in client engagement and is supporting its profitability metrics. PagSeguro (NYSE:PAGS) has also maintained strong payment growth, with its TPV reaching BRL 124 billion ($22.2 billion) with a 34% year-over-year growth. This was three times more than the industry growth, which stood at 11%. It takes the fourth spot on our list of the the 8 most promising stocks to buy among Wall Street analysts.