We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Square (SQ) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Square (SQ - Free Report) closed the most recent trading day at $229.51, moving +1.08% from the previous trading session. This change lagged the S&P 500's 1.18% gain on the day. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 1.76%.
Heading into today, shares of the mobile payments services provider had lost 3.05% over the past month, lagging the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 4.55% in that time.
Investors will be hoping for strength from SQ as it approaches its next earnings release. In that report, analysts expect SQ to post earnings of $0.20 per share. This would mark year-over-year growth of 1100%. Meanwhile, our latest consensus estimate is calling for revenue of $3.36 billion, up 143.62% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.16 per share and revenue of $14.3 billion, which would represent changes of +38.1% and +50.55%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SQ. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. SQ is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, SQ is currently trading at a Forward P/E ratio of 195.06. For comparison, its industry has an average Forward P/E of 59.91, which means SQ is trading at a premium to the group.
Also, we should mention that SQ has a PEG ratio of 5.46. 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 3.64 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 200, which puts it in the bottom 22% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Square (SQ) Gains But Lags Market: What You Should Know
Square (SQ - Free Report) closed the most recent trading day at $229.51, moving +1.08% from the previous trading session. This change lagged the S&P 500's 1.18% gain on the day. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 1.76%.
Heading into today, shares of the mobile payments services provider had lost 3.05% over the past month, lagging the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 4.55% in that time.
Investors will be hoping for strength from SQ as it approaches its next earnings release. In that report, analysts expect SQ to post earnings of $0.20 per share. This would mark year-over-year growth of 1100%. Meanwhile, our latest consensus estimate is calling for revenue of $3.36 billion, up 143.62% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.16 per share and revenue of $14.3 billion, which would represent changes of +38.1% and +50.55%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SQ. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. SQ is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, SQ is currently trading at a Forward P/E ratio of 195.06. For comparison, its industry has an average Forward P/E of 59.91, which means SQ is trading at a premium to the group.
Also, we should mention that SQ has a PEG ratio of 5.46. 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 3.64 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 200, which puts it in the bottom 22% 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.