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Square (SQ) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Square (SQ - Free Report) closed at $129.18, marking a +1.72% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.24%.
Coming into today, shares of the mobile payments services provider had gained 21.23% in the past month. In that same time, the Computer and Technology sector gained 7.08%, while the S&P 500 gained 5.34%.
SQ will be looking to display strength as it nears its next earnings release, which is expected to be August 5, 2020. The company is expected to report EPS of -$0.09, down 142.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.14 billion, down 2.89% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.16 per share and revenue of $5.19 billion, which would represent changes of -80% and +10.21%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for SQ. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.16% higher. SQ is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that SQ has a Forward P/E ratio of 813.24 right now. This valuation marks a premium compared to its industry's average Forward P/E of 78.82.
Also, we should mention that SQ has a PEG ratio of 53.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 4.06 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Square (SQ) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Square (SQ - Free Report) closed at $129.18, marking a +1.72% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.24%.
Coming into today, shares of the mobile payments services provider had gained 21.23% in the past month. In that same time, the Computer and Technology sector gained 7.08%, while the S&P 500 gained 5.34%.
SQ will be looking to display strength as it nears its next earnings release, which is expected to be August 5, 2020. The company is expected to report EPS of -$0.09, down 142.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.14 billion, down 2.89% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.16 per share and revenue of $5.19 billion, which would represent changes of -80% and +10.21%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for SQ. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.16% higher. SQ is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that SQ has a Forward P/E ratio of 813.24 right now. This valuation marks a premium compared to its industry's average Forward P/E of 78.82.
Also, we should mention that SQ has a PEG ratio of 53.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 4.06 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.