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Block (SQ) Dips More Than Broader Markets: What You Should Know
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Block (SQ - Free Report) closed at $75.46 in the latest trading session, marking a -0.97% move from the prior day. This change lagged the S&P 500's 0.1% loss on the day. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 5.8%.
Prior to today's trading, shares of the mobile payments services provider had gained 15.12% over the past month. This has outpaced the Business Services sector's gain of 3.44% and the S&P 500's gain of 3.39% in that time.
Block will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2023. The company is expected to report EPS of $0.35, up 94.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.08 billion, up 15.41% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.69 per share and revenue of $20.53 billion, which would represent changes of +69% and +17.13%, respectively, from the prior year.
Any recent changes to analyst estimates for Block should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 37.05% lower. Block is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Block is holding a Forward P/E ratio of 45.04. Its industry sports an average Forward P/E of 23.14, so we one might conclude that Block is trading at a premium comparatively.
It is also worth noting that SQ currently has a PEG ratio of 2.23. 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 1.68 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Block (SQ) Dips More Than Broader Markets: What You Should Know
Block (SQ - Free Report) closed at $75.46 in the latest trading session, marking a -0.97% move from the prior day. This change lagged the S&P 500's 0.1% loss on the day. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 5.8%.
Prior to today's trading, shares of the mobile payments services provider had gained 15.12% over the past month. This has outpaced the Business Services sector's gain of 3.44% and the S&P 500's gain of 3.39% in that time.
Block will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2023. The company is expected to report EPS of $0.35, up 94.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.08 billion, up 15.41% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.69 per share and revenue of $20.53 billion, which would represent changes of +69% and +17.13%, respectively, from the prior year.
Any recent changes to analyst estimates for Block should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 37.05% lower. Block is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Block is holding a Forward P/E ratio of 45.04. Its industry sports an average Forward P/E of 23.14, so we one might conclude that Block is trading at a premium comparatively.
It is also worth noting that SQ currently has a PEG ratio of 2.23. 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 1.68 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.