For Immediate Release
Chicago, IL – October 3, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Square, Inc. (SQ - Free Report) , Twitter (TWTR - Free Report) , Visa (V - Free Report) , eBay (EBAY - Free Report) and Amazon (AMZN - Free Report) .
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Here are highlights from Tuesday’s Analyst Blog:
Square (SQ - Free Report) Jumps Again: Time to Buy?
Shares of Square, Inc. surged nearly 3% Tuesday to extend SQ’s impressive run on the back of its increased push into small business finance and more traditional banking. Square stock has jumped over 15% in the last week alone, so is now the time to buy SQ amid what could be just the start of the new banking age?
Overview & Recent News
Square’s second-quarter revenues soared 48% from $551.5 million to $814.9 million. The financial services company, which started as a credit card processing firm for small business, among other things, saw its gross payment volume jump 30% to $21.4 billion. Square also noted that half of its GPV came from “larger sellers”—ones who generate more than $125,000 in annualized GPV—for the first time ever.
On top of its small business financial tools, investors should note that Square’s peer-to-peer payment app, the Cash App, has become widely popular. It was the #1 finance app in the U.S. during the second quarter and was on average a top-30 app in the App Store. Square’s Cash App competes directly against PayPal’s Venmo, as well as JPMorgan Chase’s QuickPay in the p2p payment space.
Square, which was co-founded and is currently run by Twitter CEO Jack Dorsey, has long had plans to become a diverse and expansive bank and finance company. Beyond trying to compete with credit card giants and Apple and Google Pay, Square has its sights set on becoming their user’s go-to place for nearly everything. “Anything you do today with a bank account, you should look to the Cash App to begin to emulate more and more of that," CFO Sarah Friar said at a Recode conference recently. “Maybe help them with their savings — how can we help them make their money work for them?”
Dorsey noted over the summer that users have started to treat Square’s Cash app more like a bank account, keeping more money in the app to pay friends and family. The company now offers a Visa debit card that is connected only to the Cash App that allows users to pay merchants and retailers with funds from their Cash App balance.
The San Francisco-based fintech company also offers loans to it qualified business customers through Square Capital. The firm’s lending division struck a deal with eBay this summer that will see Square offer loans to sellers on the e-commerce platform—Amazon offers its third-party sellers similar loans. Plus, just last week, Square introduce a mobile version of the payroll offering it launched in 2015 to help the firm better compete.
Square stock has been on a tear for some time now. Shares of SQ have skyrocketed over 665% since going public in the fall of 2015, which destroys the S&P 500’s roughly 48% climb. SQ stock has continued its massive run over the last 52 weeks, up over 234% against its industry’s 33% jump.
Square saw its stock price pop nearly 3% in morning trading Tuesday to hit $100.42 per share, which is just inches below its all-time high of $101.15 per share.
Looking ahead, our current Zacks Consensus Estimate is calling for Square’s Q3 revenues to jump 47% to hit $860.52 million. Meanwhile, its full-year revenues are projected to hit $3.32 billion, which would mark a 45.7% surge.
Investors might be even more pleased with Square’s bottom line growth projections. The firm’s adjusted quarterly earnings are projected to climb by over 57% to hit $0.11 per share, while its full-year EPS figure is expected to expand by approximately 67%.
Square is currently a Zacks Rank #3 (Hold) based on its recent earnings estimate revision trends. But the company looks poised to expand both its top and bottom line in major ways in a booming fintech industry. Therefore, it might be time to think about buying SQ stock even as it rests near its all-time high.
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