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Here's Why Squarespace (SQSP) Fell More Than Broader Market
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Squarespace (SQSP - Free Report) ended the recent trading session at $36.01, demonstrating a -0.47% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, lost 0.42%.
Shares of the a software company have appreciated by 8.1% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 2.67%.
The investment community will be paying close attention to the earnings performance of Squarespace in its upcoming release. Our most recent consensus estimate is calling for quarterly revenue of $276.38 million, up 16.6% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.52 per share and revenue of $1.18 billion, indicating changes of +1140% and +16.71%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Squarespace. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 20.47% higher. Squarespace presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Squarespace is presently being traded at a Forward P/E ratio of 69.85. This indicates a premium in contrast to its industry's Forward P/E of 23.94.
It is also worth noting that SQSP currently has a PEG ratio of 3.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software and Services industry had an average PEG ratio of 1.65 as trading concluded yesterday.
The Internet - Software and Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 50, placing it within the top 20% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SQSP in the coming trading sessions, be sure to utilize Zacks.com.
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Here's Why Squarespace (SQSP) Fell More Than Broader Market
Squarespace (SQSP - Free Report) ended the recent trading session at $36.01, demonstrating a -0.47% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, lost 0.42%.
Shares of the a software company have appreciated by 8.1% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 2.67%.
The investment community will be paying close attention to the earnings performance of Squarespace in its upcoming release. Our most recent consensus estimate is calling for quarterly revenue of $276.38 million, up 16.6% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.52 per share and revenue of $1.18 billion, indicating changes of +1140% and +16.71%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Squarespace. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 20.47% higher. Squarespace presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Squarespace is presently being traded at a Forward P/E ratio of 69.85. This indicates a premium in contrast to its industry's Forward P/E of 23.94.
It is also worth noting that SQSP currently has a PEG ratio of 3.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software and Services industry had an average PEG ratio of 1.65 as trading concluded yesterday.
The Internet - Software and Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 50, placing it within the top 20% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SQSP in the coming trading sessions, be sure to utilize Zacks.com.