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Here's Why Block (SQ) Gained But Lagged the Market Today
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Block (SQ - Free Report) closed at $81.71 in the latest trading session, marking a +0.22% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.12%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.54%.
The the stock of mobile payments services provider has risen by 18.43% in the past month, leading the Business Services sector's gain of 2.86% and the S&P 500's gain of 2.06%.
The investment community will be paying close attention to the earnings performance of Block in its upcoming release. The company's upcoming EPS is projected at $0.66, signifying a 65% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.74 billion, up 15.01% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.03 per share and a revenue of $24.72 billion, demonstrating changes of +68.33% and +12.81%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Block. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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 last 30 days, the Zacks Consensus EPS estimate has moved 13.42% higher. Block is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Block is currently trading at a Forward P/E ratio of 26.88. Its industry sports an average Forward P/E of 26.88, so one might conclude that Block is trading at no noticeable deviation comparatively.
We can additionally observe that SQ currently boasts a PEG ratio of 0.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.57.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 35% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Here's Why Block (SQ) Gained But Lagged the Market Today
Block (SQ - Free Report) closed at $81.71 in the latest trading session, marking a +0.22% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.12%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.54%.
The the stock of mobile payments services provider has risen by 18.43% in the past month, leading the Business Services sector's gain of 2.86% and the S&P 500's gain of 2.06%.
The investment community will be paying close attention to the earnings performance of Block in its upcoming release. The company's upcoming EPS is projected at $0.66, signifying a 65% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.74 billion, up 15.01% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.03 per share and a revenue of $24.72 billion, demonstrating changes of +68.33% and +12.81%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Block. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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 last 30 days, the Zacks Consensus EPS estimate has moved 13.42% higher. Block is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Block is currently trading at a Forward P/E ratio of 26.88. Its industry sports an average Forward P/E of 26.88, so one might conclude that Block is trading at no noticeable deviation comparatively.
We can additionally observe that SQ currently boasts a PEG ratio of 0.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.57.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 35% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.