PAGS high earnings yield, low book value, pressed on bollingers

Going long a combination jan 2025 options spread and long stock.
I am bullish the stock over the 5 year outlook at current prices.
It could trade in a 6 to 14 range for a while before breaking out.
5 year out look price target could be 30-40 dollar stock at high multiple PE on stock.

Company is a payments company in brazil.

Earnings yield is very high, pe is very low. Forward 2025 PE is 6.60.
Price is near Tangible book value, at 6.54.

RISK-EWZ etf is showing possible risk to the downside, that could hurt PAGS.



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following info credit to perplexity.ai
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PagSeguro Digital Ltd. (NYSE: PAGS) is a Brazilian fintech company that provides financial and payment solutions. Here's an overview of PAGS stock and the company:

## Company Overview

PagSeguro Digital offers a range of services including:

- Digital banking solutions
- Online and point-of-sale (POS) payment processing
- Debit, credit, and prepaid cards
- Credit products like loans and overdraft accounts
- Insurance and investment services

The company primarily serves consumers, individual entrepreneurs, micro-merchants, and small to medium-sized businesses in Brazil and internationally
## Analyst Outlook

The stock currently has a "Buy" rating from analysts, with an average 12-month price target of $15.11, representing a potential 71.51% increase from the current price[3].

## Recent Developments

PagSeguro has been showing strong growth in its core business:

- In Q2 2024, the company reported a 34% increase in Total Payment Volume (TPV) and a 31.7% year-over-year growth in net income[3].
- The company has been gaining market share and outpacing industry TPV growth, despite challenges from high interest rates in Brazil[3].

While PagSeguro faces competitive challenges in the Brazilian fintech market, its discounted valuation and growth potential have attracted attention from some investors looking for long-term opportunities in the sector
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