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Block (SQ) Gains But Lags Market: What You Should Know
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Block (SQ - Free Report) closed at $55.99 in the latest trading session, marking a +1.47% move from the prior day. This move lagged the S&P 500's daily gain of 2.37%. Elsewhere, the Dow gained 2.47%, while the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the mobile payments services provider had lost 1.34% over the past month, outpacing the Business Services sector's loss of 8.16% and the S&P 500's loss of 4.82% in that time.
Investors will be hoping for strength from Block as it approaches its next earnings release, which is expected to be November 3, 2022. On that day, Block is projected to report earnings of $0.24 per share, which would represent a year-over-year decline of 35.14%. Our most recent consensus estimate is calling for quarterly revenue of $4.49 billion, up 16.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.88 per share and revenue of $17.58 billion, which would represent changes of -48.54% and -0.47%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Block. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 4.3% lower within the past month. Block is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Block is holding a Forward P/E ratio of 62.92. Its industry sports an average Forward P/E of 21.45, so we one might conclude that Block is trading at a premium comparatively.
It is also worth noting that SQ currently has a PEG ratio of 8.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SQ's industry had an average PEG ratio of 1.95 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Block (SQ) Gains But Lags Market: What You Should Know
Block (SQ - Free Report) closed at $55.99 in the latest trading session, marking a +1.47% move from the prior day. This move lagged the S&P 500's daily gain of 2.37%. Elsewhere, the Dow gained 2.47%, while the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the mobile payments services provider had lost 1.34% over the past month, outpacing the Business Services sector's loss of 8.16% and the S&P 500's loss of 4.82% in that time.
Investors will be hoping for strength from Block as it approaches its next earnings release, which is expected to be November 3, 2022. On that day, Block is projected to report earnings of $0.24 per share, which would represent a year-over-year decline of 35.14%. Our most recent consensus estimate is calling for quarterly revenue of $4.49 billion, up 16.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.88 per share and revenue of $17.58 billion, which would represent changes of -48.54% and -0.47%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Block. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 4.3% lower within the past month. Block is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Block is holding a Forward P/E ratio of 62.92. Its industry sports an average Forward P/E of 21.45, so we one might conclude that Block is trading at a premium comparatively.
It is also worth noting that SQ currently has a PEG ratio of 8.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SQ's industry had an average PEG ratio of 1.95 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.