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Square (SQ) Stock Sinks As Market Gains: What You Should Know

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Square (SQ - Free Report) closed at $261.99 in the latest trading session, marking a -0.76% move from the prior day. This change lagged the S&P 500's daily gain of 0.24%.

Heading into today, shares of the mobile payments services provider had gained 10.03% over the past month, outpacing the Computer and Technology sector's gain of 2.93% and the S&P 500's gain of 4.09% in that time.

Wall Street will be looking for positivity from SQ as it approaches its next earnings report date. This is expected to be August 5, 2021. In that report, analysts expect SQ to post earnings of $0.32 per share. This would mark year-over-year growth of 77.78%. Our most recent consensus estimate is calling for quarterly revenue of $5.02 billion, up 160.97% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.51 per share and revenue of $20.25 billion, which would represent changes of +79.76% and +113.19%, respectively, from the prior year.

Any recent changes to analyst estimates for SQ should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 2.89% higher within the past month. SQ is currently a Zacks Rank #4 (Sell).

Investors should also note SQ's current valuation metrics, including its Forward P/E ratio of 175.28. This represents a premium compared to its industry's average Forward P/E of 67.98.

Investors should also note that SQ has a PEG ratio of 3.72 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 3.73 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 17% 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.

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