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Block (SQ) Registers a Bigger Fall Than the Market: Important Facts to Note
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The most recent trading session ended with Block (SQ - Free Report) standing at $62.15, reflecting a -0.34% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.04% for the day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.12%.
Coming into today, shares of the mobile payments services provider had lost 13.09% in the past month. In that same time, the Business Services sector lost 0.56%, while the S&P 500 gained 4.15%.
Market participants will be closely following the financial results of Block in its upcoming release. It is anticipated that the company will report an EPS of $0.75, marking a 92.31% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.29 billion, showing a 13.63% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.11 per share and revenue of $25.22 billion, which would represent changes of +72.78% and +15.07%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Block. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.41% higher within the past month. Block presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Block is presently being traded at a Forward P/E ratio of 20.07. This signifies a discount in comparison to the average Forward P/E of 21.84 for its industry.
Meanwhile, SQ's PEG ratio is currently 0.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Technology Services industry stood at 1.54 at the close of the market yesterday.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 27% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Block (SQ) Registers a Bigger Fall Than the Market: Important Facts to Note
The most recent trading session ended with Block (SQ - Free Report) standing at $62.15, reflecting a -0.34% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.04% for the day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.12%.
Coming into today, shares of the mobile payments services provider had lost 13.09% in the past month. In that same time, the Business Services sector lost 0.56%, while the S&P 500 gained 4.15%.
Market participants will be closely following the financial results of Block in its upcoming release. It is anticipated that the company will report an EPS of $0.75, marking a 92.31% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.29 billion, showing a 13.63% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.11 per share and revenue of $25.22 billion, which would represent changes of +72.78% and +15.07%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Block. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.41% higher within the past month. Block presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Block is presently being traded at a Forward P/E ratio of 20.07. This signifies a discount in comparison to the average Forward P/E of 21.84 for its industry.
Meanwhile, SQ's PEG ratio is currently 0.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Technology Services industry stood at 1.54 at the close of the market yesterday.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 27% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.