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Block (SQ) Stock Falls Amid Market Uptick: What Investors Need to Know
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Block (SQ - Free Report) closed the most recent trading day at $74.03, moving -1.57% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.02%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.1%.
The mobile payments services provider's stock has dropped by 10.25% in the past month, falling short of the Business Services sector's loss of 5.08% and the S&P 500's loss of 3.01%.
Analysts and investors alike will be keeping a close eye on the performance of Block in its upcoming earnings disclosure. The company's earnings report is set to go public 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.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.96 per share and revenue of $24.65 billion, which would represent changes of +64.44% and +12.46%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.39% downward. At present, Block boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Block is presently trading at a Forward P/E ratio of 25.44. For comparison, its industry has an average Forward P/E of 23.22, which means Block is trading at a premium to the group.
It is also worth noting that SQ currently has a PEG ratio of 0.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.52.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 40% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Block (SQ) Stock Falls Amid Market Uptick: What Investors Need to Know
Block (SQ - Free Report) closed the most recent trading day at $74.03, moving -1.57% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.02%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 0.1%.
The mobile payments services provider's stock has dropped by 10.25% in the past month, falling short of the Business Services sector's loss of 5.08% and the S&P 500's loss of 3.01%.
Analysts and investors alike will be keeping a close eye on the performance of Block in its upcoming earnings disclosure. The company's earnings report is set to go public 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.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.96 per share and revenue of $24.65 billion, which would represent changes of +64.44% and +12.46%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.39% downward. At present, Block boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Block is presently trading at a Forward P/E ratio of 25.44. For comparison, its industry has an average Forward P/E of 23.22, which means Block is trading at a premium to the group.
It is also worth noting that SQ currently has a PEG ratio of 0.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.52.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 40% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.