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Square (SQ) Stock Sinks As Market Gains: What You Should Know
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Square (SQ - Free Report) closed the most recent trading day at $145.47, moving -1.99% from the previous trading session. This move lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.14%.
Coming into today, shares of the mobile payments services provider had lost 13.06% in the past month. In that same time, the Computer and Technology sector lost 4.59%, while the S&P 500 gained 0.12%.
Investors will be hoping for strength from Square as it approaches its next earnings release. On that day, Square is projected to report earnings of $0.20 per share, which would represent a year-over-year decline of 37.5%. Meanwhile, our latest consensus estimate is calling for revenue of $3.93 billion, up 24.3% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Square. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 9.07% lower within the past month. Square is currently a Zacks Rank #4 (Sell).
In terms of valuation, Square is currently trading at a Forward P/E ratio of 87.88. For comparison, its industry has an average Forward P/E of 57.18, which means Square is trading at a premium to the group.
Meanwhile, SQ's PEG ratio is currently 2.6. 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. SQ's industry had an average PEG ratio of 3.02 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 182, putting it in the bottom 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Square (SQ) Stock Sinks As Market Gains: What You Should Know
Square (SQ - Free Report) closed the most recent trading day at $145.47, moving -1.99% from the previous trading session. This move lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.14%.
Coming into today, shares of the mobile payments services provider had lost 13.06% in the past month. In that same time, the Computer and Technology sector lost 4.59%, while the S&P 500 gained 0.12%.
Investors will be hoping for strength from Square as it approaches its next earnings release. On that day, Square is projected to report earnings of $0.20 per share, which would represent a year-over-year decline of 37.5%. Meanwhile, our latest consensus estimate is calling for revenue of $3.93 billion, up 24.3% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Square. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 9.07% lower within the past month. Square is currently a Zacks Rank #4 (Sell).
In terms of valuation, Square is currently trading at a Forward P/E ratio of 87.88. For comparison, its industry has an average Forward P/E of 57.18, which means Square is trading at a premium to the group.
Meanwhile, SQ's PEG ratio is currently 2.6. 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. SQ's industry had an average PEG ratio of 3.02 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 182, putting it in the bottom 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.