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Block (SQ) Stock Moves -0.02%: What You Should Know

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Block (SQ - Free Report) closed the most recent trading day at $80.77, moving -0.02% from the previous trading session. This change traded in line with S&P 500. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 5.44%.

Heading into today, shares of the mobile payments services provider had gained 34.97% over the past month, outpacing the Business Services sector's gain of 7.78% and the S&P 500's gain of 4.57% in that time.

Block will be looking to display strength as it nears its next earnings release, which is expected to be February 23, 2023. In that report, analysts expect Block to post earnings of $0.29 per share. This would mark year-over-year growth of 7.41%. Meanwhile, our latest consensus estimate is calling for revenue of $4.53 billion, up 11.1% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Block. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Block is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that Block has a Forward P/E ratio of 47.15 right now. This valuation marks a premium compared to its industry's average Forward P/E of 21.23.

It is also worth noting that SQ currently has a PEG ratio of 3.9. 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 Technology Services was holding an average PEG ratio of 2.05 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 147, putting it in the bottom 42% 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.


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