In the latest trading session, Square (SQ - Free Report) closed at $62.25, marking a -0.64% move from the previous day. This change lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.33%.
Heading into today, shares of the mobile payments services provider had lost 0.59% over the past month, lagging the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 0.59% in that time.
Wall Street will be looking for positivity from SQ as it approaches its next earnings report date. On that day, SQ is projected to report earnings of $0.20 per share, which would represent year-over-year growth of 53.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 $4.54 billion. These results would represent year-over-year changes of +63.83% and +37.74%, respectively.
Investors might also notice recent changes to analyst estimates for SQ. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 1.9% lower. SQ is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, SQ is holding a Forward P/E ratio of 81.36. For comparison, its industry has an average Forward P/E of 54.92, which means SQ is trading at a premium to the group.
Investors should also note that SQ has a PEG ratio of 3.25 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 2.65 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 88, which puts it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.