In the latest trading session, Square (SQ - Free Report) closed at $123.51, marking a -1.78% move from the previous day. This change lagged the S&P 500's 0.65% loss on the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.27%.
Prior to today's trading, shares of the mobile payments services provider had gained 21.29% over the past month. This has outpaced the Computer and Technology sector's gain of 7.86% and the S&P 500's gain of 7.76% in that time.
Investors will be hoping for strength from SQ as it approaches its next earnings release, which is expected to be August 5, 2020. On that day, SQ is projected to report earnings of -$0.08 per share, which would represent a year-over-year decline of 138.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.14 billion, down 2.89% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.15 per share and revenue of $5.19 billion. These totals would mark changes of -81.25% and +10.21%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SQ. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.16% higher. SQ currently has a Zacks Rank of #4 (Sell).
Digging into valuation, SQ currently has a Forward P/E ratio of 851.43. This valuation marks a premium compared to its industry's average Forward P/E of 79.96.
Also, we should mention that SQ has a PEG ratio of 50.59. 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 was holding an average PEG ratio of 4.34 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.