Back to top

Image: Bigstock

Block (SQ) Advances While Market Declines: Some Information for Investors

Read MoreHide Full Article

The most recent trading session ended with Block (SQ - Free Report) standing at $73.51, reflecting a +0.51% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily loss of 0.58%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 1.15%.

The mobile payments services provider's stock has dropped by 7.79% in the past month, falling short of the Business Services sector's loss of 4.36% and the S&P 500's loss of 1.09%.

Investors will be eagerly watching for the performance of Block in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 2, 2024. On that day, Block is projected to report earnings of $0.62 per share, which would represent year-over-year growth of 55%. Meanwhile, the latest consensus estimate predicts the revenue to be $5.73 billion, indicating a 14.8% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.96 per share and revenue of $24.65 billion, indicating changes of +64.44% and +12.46%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Block. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

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 6.39% lower. Block presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Block is presently being traded at a Forward P/E ratio of 24.68. This indicates a premium in contrast to its industry's Forward P/E of 22.36.

It is also worth noting that SQ currently has a PEG ratio of 0.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Technology Services industry stood at 1.6 at the close of the market yesterday.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.

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.

To follow SQ in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Block, Inc. (SQ) - free report >>

Published in