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Squarespace (SQSP) Increases Yet Falls Behind Market: What Investors Need to Know
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Squarespace (SQSP - Free Report) closed the latest trading day at $32.96, indicating a +0.43% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.91%, and the technology-dominated Nasdaq saw an increase of 0.3%.
The the stock of a software company has risen by 5.87% in the past month, lagging the Computer and Technology sector's gain of 8.43% and overreaching the S&P 500's gain of 4.61%.
Market participants will be closely following the financial results of Squarespace in its upcoming release. The company plans to announce its earnings on February 28, 2024. In that report, analysts expect Squarespace to post earnings of $0.17 per share. This would mark year-over-year growth of 342.86%. Meanwhile, the latest consensus estimate predicts the revenue to be $263.79 million, indicating a 15.29% increase compared to the same quarter of the previous year.
Any recent changes to analyst estimates for Squarespace should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Squarespace is currently a Zacks Rank #3 (Hold).
In terms of valuation, Squarespace is currently trading at a Forward P/E ratio of 72.29. Its industry sports an average Forward P/E of 23.84, so one might conclude that Squarespace is trading at a premium comparatively.
It's also important to note that SQSP currently trades at a PEG ratio of 1.73. 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 of the close of trade yesterday, the Internet - Software and Services industry held an average PEG ratio of 1.01.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 34, finds itself in the top 14% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Squarespace (SQSP) Increases Yet Falls Behind Market: What Investors Need to Know
Squarespace (SQSP - Free Report) closed the latest trading day at $32.96, indicating a +0.43% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.91%, and the technology-dominated Nasdaq saw an increase of 0.3%.
The the stock of a software company has risen by 5.87% in the past month, lagging the Computer and Technology sector's gain of 8.43% and overreaching the S&P 500's gain of 4.61%.
Market participants will be closely following the financial results of Squarespace in its upcoming release. The company plans to announce its earnings on February 28, 2024. In that report, analysts expect Squarespace to post earnings of $0.17 per share. This would mark year-over-year growth of 342.86%. Meanwhile, the latest consensus estimate predicts the revenue to be $263.79 million, indicating a 15.29% increase compared to the same quarter of the previous year.
Any recent changes to analyst estimates for Squarespace should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Squarespace is currently a Zacks Rank #3 (Hold).
In terms of valuation, Squarespace is currently trading at a Forward P/E ratio of 72.29. Its industry sports an average Forward P/E of 23.84, so one might conclude that Squarespace is trading at a premium comparatively.
It's also important to note that SQSP currently trades at a PEG ratio of 1.73. 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 of the close of trade yesterday, the Internet - Software and Services industry held an average PEG ratio of 1.01.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 34, finds itself in the top 14% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.