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Squarespace (SQSP) Outpaces Stock Market Gains: What You Should Know
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Squarespace (SQSP - Free Report) closed the most recent trading day at $29.09, moving +0.66% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.83%.
Prior to today's trading, shares of the a software company had lost 4.3% over the past month. This has lagged the Computer and Technology sector's loss of 2.71% and the S&P 500's loss of 2.84% in that time.
Investors will be hoping for strength from Squarespace as it approaches its next earnings release. In that report, analysts expect Squarespace to post earnings of $0.17 per share. This would mark year-over-year growth of 142.86%. Our most recent consensus estimate is calling for quarterly revenue of $252.37 million, up 15.93% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.29 per share and revenue of $993.36 million, which would represent changes of +252.63% and +14.58%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Squarespace. 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 remained stagnant. Squarespace is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Squarespace currently has a Forward P/E ratio of 101.4. For comparison, its industry has an average Forward P/E of 23.01, which means Squarespace is trading at a premium to the group.
It is also worth noting that SQSP currently has a PEG ratio of 6.02. 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 Internet - Software and Services was holding an average PEG ratio of 1.41 at yesterday's closing price.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SQSP in the coming trading sessions, be sure to utilize Zacks.com.
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Squarespace (SQSP) Outpaces Stock Market Gains: What You Should Know
Squarespace (SQSP - Free Report) closed the most recent trading day at $29.09, moving +0.66% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.83%.
Prior to today's trading, shares of the a software company had lost 4.3% over the past month. This has lagged the Computer and Technology sector's loss of 2.71% and the S&P 500's loss of 2.84% in that time.
Investors will be hoping for strength from Squarespace as it approaches its next earnings release. In that report, analysts expect Squarespace to post earnings of $0.17 per share. This would mark year-over-year growth of 142.86%. Our most recent consensus estimate is calling for quarterly revenue of $252.37 million, up 15.93% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.29 per share and revenue of $993.36 million, which would represent changes of +252.63% and +14.58%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Squarespace. 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 remained stagnant. Squarespace is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Squarespace currently has a Forward P/E ratio of 101.4. For comparison, its industry has an average Forward P/E of 23.01, which means Squarespace is trading at a premium to the group.
It is also worth noting that SQSP currently has a PEG ratio of 6.02. 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 Internet - Software and Services was holding an average PEG ratio of 1.41 at yesterday's closing price.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SQSP in the coming trading sessions, be sure to utilize Zacks.com.