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Block (SQ) Outpaces Stock Market Gains: What You Should Know
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Block (SQ - Free Report) closed the most recent trading day at $68.10, moving +0.65% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.36%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 1.91%.
Prior to today's trading, shares of the mobile payments services provider had lost 13.2% over the past month. This has lagged the Business Services sector's loss of 2.79% and the S&P 500's gain of 1.24% in that time.
Wall Street will be looking for positivity from Block as it approaches its next earnings report date. This is expected to be May 4, 2023. On that day, Block is projected to report earnings of $0.31 per share, which would represent year-over-year growth of 72.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.56 billion, up 15.13% from the year-ago period.
SQ's full-year Zacks Consensus Estimates are calling for earnings of $1.63 per share and revenue of $19.76 billion. These results would represent year-over-year changes of +63% and +12.69%, respectively.
It is also important to note the recent changes to analyst estimates for Block. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 29.64% lower within the past month. Block is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Block is holding a Forward P/E ratio of 41.47. This valuation marks a premium compared to its industry's average Forward P/E of 20.63.
We can also see that SQ currently has a PEG ratio of 2. 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. SQ's industry had an average PEG ratio of 1.85 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.
To follow SQ in the coming trading sessions, be sure to utilize Zacks.com.
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Block (SQ) Outpaces Stock Market Gains: What You Should Know
Block (SQ - Free Report) closed the most recent trading day at $68.10, moving +0.65% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.36%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 1.91%.
Prior to today's trading, shares of the mobile payments services provider had lost 13.2% over the past month. This has lagged the Business Services sector's loss of 2.79% and the S&P 500's gain of 1.24% in that time.
Wall Street will be looking for positivity from Block as it approaches its next earnings report date. This is expected to be May 4, 2023. On that day, Block is projected to report earnings of $0.31 per share, which would represent year-over-year growth of 72.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.56 billion, up 15.13% from the year-ago period.
SQ's full-year Zacks Consensus Estimates are calling for earnings of $1.63 per share and revenue of $19.76 billion. These results would represent year-over-year changes of +63% and +12.69%, respectively.
It is also important to note the recent changes to analyst estimates for Block. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 29.64% lower within the past month. Block is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Block is holding a Forward P/E ratio of 41.47. This valuation marks a premium compared to its industry's average Forward P/E of 20.63.
We can also see that SQ currently has a PEG ratio of 2. 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. SQ's industry had an average PEG ratio of 1.85 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.
To follow SQ in the coming trading sessions, be sure to utilize Zacks.com.