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Block (SQ) Gains But Lags Market: What You Should Know
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The latest trading session saw Block (SQ - Free Report) ending at $72.07, denoting a +0.01% adjustment from its last day's close. This change lagged the S&P 500's 0.64% gain on the day. On the other hand, the Dow registered a gain of 1.85%, and the technology-centric Nasdaq increased by 0.2%.
The mobile payments services provider's shares have seen an increase of 15.3% over the last month, surpassing the Business Services sector's gain of 2.71% and the S&P 500's gain of 3.82%.
Market participants will be closely following the financial results of Block in its upcoming release. The company plans to announce its earnings on August 1, 2024. The company's upcoming EPS is projected at $0.75, signifying a 92.31% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.27 billion, indicating a 13.36% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.11 per share and revenue of $25.17 billion, indicating changes of +72.78% and +14.86%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Block. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Block currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Block currently has a Forward P/E ratio of 23.19. This represents a premium compared to its industry's average Forward P/E of 23.15.
It is also worth noting that SQ currently has a PEG ratio of 0.69. 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. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.48.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Block (SQ) Gains But Lags Market: What You Should Know
The latest trading session saw Block (SQ - Free Report) ending at $72.07, denoting a +0.01% adjustment from its last day's close. This change lagged the S&P 500's 0.64% gain on the day. On the other hand, the Dow registered a gain of 1.85%, and the technology-centric Nasdaq increased by 0.2%.
The mobile payments services provider's shares have seen an increase of 15.3% over the last month, surpassing the Business Services sector's gain of 2.71% and the S&P 500's gain of 3.82%.
Market participants will be closely following the financial results of Block in its upcoming release. The company plans to announce its earnings on August 1, 2024. The company's upcoming EPS is projected at $0.75, signifying a 92.31% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.27 billion, indicating a 13.36% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.11 per share and revenue of $25.17 billion, indicating changes of +72.78% and +14.86%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Block. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Block currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Block currently has a Forward P/E ratio of 23.19. This represents a premium compared to its industry's average Forward P/E of 23.15.
It is also worth noting that SQ currently has a PEG ratio of 0.69. 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. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.48.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.