Square (SQ - Free Report) closed at $59.03 in the latest trading session, marking a -1.21% move from the prior day. This change lagged the S&P 500's daily of 0%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, added 0.07%.
Prior to today's trading, shares of the mobile payments services provider had lost 8.65% over the past month. This has lagged the Computer and Technology sector's gain of 4.17% and the S&P 500's gain of 4.25% in that time.
SQ will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.20, up 53.85% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.19 billion, up 35.37% from the year-ago period.
SQ's full-year Zacks Consensus Estimates are calling for earnings of $0.77 per share and revenue of $4.55 billion. These results would represent year-over-year changes of +63.83% and +37.86%, respectively.
Investors should also note any recent changes to analyst estimates for SQ. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SQ is currently a Zacks Rank #3 (Hold).
Digging into valuation, SQ currently has a Forward P/E ratio of 77.85. This represents a premium compared to its industry's average Forward P/E of 57.61.
Investors should also note that SQ has a PEG ratio of 3.11 right now. 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. SQ's industry had an average PEG ratio of 2.9 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.