We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Block (SQ) Flat As Market Gains: What You Should Know
Read MoreHide Full Article
Block (SQ - Free Report) closed the latest trading day at $41.90, indicating no change from the previous session's end. This move lagged the S&P 500's daily gain of 0.81%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 1.35%.
Prior to today's trading, shares of the mobile payments services provider had lost 28.67% over the past month. This has lagged the Business Services sector's loss of 7.4% and the S&P 500's loss of 6.19% in that time.
The investment community will be paying close attention to the earnings performance of Block in its upcoming release. It is anticipated that the company will report an EPS of $0.43, marking a 2.38% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $5.4 billion, indicating a 19.63% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.69 per share and revenue of $21.47 billion. These totals would mark changes of +69% and +22.47%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Block. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. As of now, Block holds a Zacks Rank of #3 (Hold).
In terms of valuation, Block is currently trading at a Forward P/E ratio of 24.76. This denotes a premium relative to the industry's average Forward P/E of 22.23.
It's also important to note that SQ currently trades at a PEG ratio of 0.83. 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. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.36.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 41% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Block (SQ) Flat As Market Gains: What You Should Know
Block (SQ - Free Report) closed the latest trading day at $41.90, indicating no change from the previous session's end. This move lagged the S&P 500's daily gain of 0.81%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 1.35%.
Prior to today's trading, shares of the mobile payments services provider had lost 28.67% over the past month. This has lagged the Business Services sector's loss of 7.4% and the S&P 500's loss of 6.19% in that time.
The investment community will be paying close attention to the earnings performance of Block in its upcoming release. It is anticipated that the company will report an EPS of $0.43, marking a 2.38% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $5.4 billion, indicating a 19.63% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.69 per share and revenue of $21.47 billion. These totals would mark changes of +69% and +22.47%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Block. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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.
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. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. As of now, Block holds a Zacks Rank of #3 (Hold).
In terms of valuation, Block is currently trading at a Forward P/E ratio of 24.76. This denotes a premium relative to the industry's average Forward P/E of 22.23.
It's also important to note that SQ currently trades at a PEG ratio of 0.83. 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. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.36.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 41% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.