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Block (SQ) Stock Moves -0.04%: What You Should Know

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Block (SQ - Free Report) ended the recent trading session at $67.87, demonstrating a -0.04% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.07% for the day.

The mobile payments services provider's stock has dropped by 3.08% in the past month, falling short of the Business Services sector's gain of 2.84% and the S&P 500's gain of 3.98%.

Analysts and investors alike will be keeping a close eye on the performance of Block in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.56, indicating a 154.55% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $5.65 billion, reflecting a 21.54% rise from the equivalent quarter last year.

Investors might also notice recent changes to analyst estimates for Block. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 0.69% higher. At present, Block boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Block is currently exchanging hands at a Forward P/E ratio of 23.13. Its industry sports an average Forward P/E of 23.44, so one might conclude that Block is trading at a discount comparatively.

It's also important to note that SQ currently trades at a PEG ratio of 0.67. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.57.

The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 56, placing it within the top 23% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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