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Block (SQ) Gains As Market Dips: What You Should Know
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Block (SQ - Free Report) closed the most recent trading day at $74.07, moving +0.6% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.87%, and the Nasdaq, a tech-heavy index, added 2.77%.
Heading into today, shares of the mobile payments services provider had lost 6.56% over the past month, lagging the Business Services sector's loss of 6.49% and the S&P 500's loss of 5.06% in that time.
Investors will be hoping for strength from Block as it approaches its next earnings release. In that report, analysts expect Block 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 $4.54 billion, up 14.74% from the year-ago period.
SQ's full-year Zacks Consensus Estimates are calling for earnings of $1.67 per share and revenue of $19.76 billion. These results would represent year-over-year changes of +67% and +12.69%, respectively.
It is also important to note the recent changes to analyst estimates for Block. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 138.52% lower. Block is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Block is holding a Forward P/E ratio of 44.21. Its industry sports an average Forward P/E of 20.03, 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 2.13. 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. The Technology Services was holding an average PEG ratio of 2.13 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Block (SQ) Gains As Market Dips: What You Should Know
Block (SQ - Free Report) closed the most recent trading day at $74.07, moving +0.6% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.87%, and the Nasdaq, a tech-heavy index, added 2.77%.
Heading into today, shares of the mobile payments services provider had lost 6.56% over the past month, lagging the Business Services sector's loss of 6.49% and the S&P 500's loss of 5.06% in that time.
Investors will be hoping for strength from Block as it approaches its next earnings release. In that report, analysts expect Block 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 $4.54 billion, up 14.74% from the year-ago period.
SQ's full-year Zacks Consensus Estimates are calling for earnings of $1.67 per share and revenue of $19.76 billion. These results would represent year-over-year changes of +67% and +12.69%, respectively.
It is also important to note the recent changes to analyst estimates for Block. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 138.52% lower. Block is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Block is holding a Forward P/E ratio of 44.21. Its industry sports an average Forward P/E of 20.03, 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 2.13. 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. The Technology Services was holding an average PEG ratio of 2.13 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.