In the latest trading session, Square (SQ - Free Report) closed at $94.10, marking a -0.32% move from the previous day. This move outpaced the S&P 500's daily loss of 0.55%. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Coming into today, shares of the mobile payments services provider had gained 6.72% in the past month. In that same time, the Computer and Technology sector lost 1.81%, while the S&P 500 gained 0.37%.
Investors will be hoping for strength from SQ as it approaches its next earnings release, which is expected to be November 14, 2018. On that day, SQ is projected to report earnings of $0.11 per share, which would represent year-over-year growth of 57.14%. Our most recent consensus estimate is calling for quarterly revenue of $860.52 million, up 47.06% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.45 per share and revenue of $3.23 billion, which would represent changes of +66.67% and +45.72%, respectively, from the prior year.
Any recent changes to analyst estimates for SQ should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. SQ is currently a Zacks Rank #3 (Hold).
In terms of valuation, SQ is currently trading at a Forward P/E ratio of 209.46. For comparison, its industry has an average Forward P/E of 65.8, which means SQ is trading at a premium to the group.
Also, we should mention that SQ has a PEG ratio of 8.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 4.31 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.