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Squarespace (SQSP) Stock Sinks As Market Gains: What You Should Know

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Squarespace (SQSP - Free Report) ended the recent trading session at $31.71, demonstrating a -0.81% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.24%.

Prior to today's trading, shares of the a software company had gained 1.36% over the past month. This has lagged the Computer and Technology sector's gain of 12.39% and the S&P 500's gain of 6.45% in that time.

The upcoming earnings release of Squarespace will be of great interest to investors. The company's earnings report is expected on February 28, 2024. On that day, Squarespace is projected to report earnings of $0.17 per share, which would represent year-over-year growth of 342.86%. In the meantime, our current consensus estimate forecasts the revenue to be $263.79 million, indicating a 15.29% growth compared to the corresponding quarter of the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Squarespace. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Squarespace possesses a Zacks Rank of #5 (Strong Sell).

Investors should also note Squarespace's current valuation metrics, including its Forward P/E ratio of 70.42. This represents a premium compared to its industry's average Forward P/E of 21.84.

It's also important to note that SQSP currently trades at a PEG ratio of 1.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software and Services industry was having an average PEG ratio of 0.98.

The Internet - Software and Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 65, this industry ranks in the top 26% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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