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Squarespace (SQSP) Laps the Stock Market: Here's Why
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In the latest trading session, Squarespace (SQSP - Free Report) closed at $31.54, marking a +1.74% move from the previous day. This move outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq appreciated by 0.75%.
Coming into today, shares of the a software company had gained 12.32% in the past month. In that same time, the Computer and Technology sector gained 1.51%, while the S&P 500 gained 3.4%.
Analysts and investors alike will be keeping a close eye on the performance of Squarespace in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.17, reflecting a 342.86% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $263.79 million, up 15.29% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Squarespace. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 6.58% lower. Currently, Squarespace is carrying a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Squarespace is at present trading with a Forward P/E ratio of 68.28. This denotes a premium relative to the industry's average Forward P/E of 23.62.
One should further note that SQSP currently holds a PEG ratio of 1.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software and Services stocks are, on average, holding a PEG ratio of 1.1 based on yesterday's closing prices.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Squarespace (SQSP) Laps the Stock Market: Here's Why
In the latest trading session, Squarespace (SQSP - Free Report) closed at $31.54, marking a +1.74% move from the previous day. This move outpaced the S&P 500's daily gain of 0.57%. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq appreciated by 0.75%.
Coming into today, shares of the a software company had gained 12.32% in the past month. In that same time, the Computer and Technology sector gained 1.51%, while the S&P 500 gained 3.4%.
Analysts and investors alike will be keeping a close eye on the performance of Squarespace in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.17, reflecting a 342.86% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $263.79 million, up 15.29% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Squarespace. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 6.58% lower. Currently, Squarespace is carrying a Zacks Rank of #5 (Strong Sell).
In the context of valuation, Squarespace is at present trading with a Forward P/E ratio of 68.28. This denotes a premium relative to the industry's average Forward P/E of 23.62.
One should further note that SQSP currently holds a PEG ratio of 1.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software and Services stocks are, on average, holding a PEG ratio of 1.1 based on yesterday's closing prices.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.