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Block (SQ) Gains But Lags Market: What You Should Know
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Block (SQ - Free Report) closed at $71.80 in the latest trading session, marking a +0.18% move from the prior day. The stock lagged the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 8.98%.
Heading into today, shares of the mobile payments services provider had gained 0.59% over the past month, lagging the Business Services sector's gain of 2.76% and the S&P 500's gain of 1% in that time.
Wall Street will be looking for positivity from Block as it approaches its next earnings report date. The company is expected to report EPS of $0.30, up 11.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.56 billion, up 11.8% from the year-ago period.
Any recent changes to analyst estimates for Block 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 116.39% higher. Block is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Block currently has a Forward P/E ratio of 41.77. This valuation marks a premium compared to its industry's average Forward P/E of 20.49.
Also, we should mention that SQ has a PEG ratio of 3.23. 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 Technology Services was holding an average PEG ratio of 2.06 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% 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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Block (SQ) Gains But Lags Market: What You Should Know
Block (SQ - Free Report) closed at $71.80 in the latest trading session, marking a +0.18% move from the prior day. The stock lagged the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 8.98%.
Heading into today, shares of the mobile payments services provider had gained 0.59% over the past month, lagging the Business Services sector's gain of 2.76% and the S&P 500's gain of 1% in that time.
Wall Street will be looking for positivity from Block as it approaches its next earnings report date. The company is expected to report EPS of $0.30, up 11.11% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.56 billion, up 11.8% from the year-ago period.
Any recent changes to analyst estimates for Block 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 116.39% higher. Block is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Block currently has a Forward P/E ratio of 41.77. This valuation marks a premium compared to its industry's average Forward P/E of 20.49.
Also, we should mention that SQ has a PEG ratio of 3.23. 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 Technology Services was holding an average PEG ratio of 2.06 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% 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.