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Block (SQ) Falls More Steeply Than Broader Market: What Investors Need to Know
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The latest trading session saw Block (SQ - Free Report) ending at $66.89, denoting a -1.99% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.06%.
Shares of the mobile payments services provider have appreciated by 5.98% over the course of the past month, outperforming the Business Services sector's gain of 0.9% and the S&P 500's gain of 1.96%.
The upcoming earnings release of Block will be of great interest to investors. The company's earnings report is expected on August 1, 2024. In that report, analysts expect Block to post earnings of $0.76 per share. This would mark year-over-year growth of 94.87%. At the same time, our most recent consensus estimate is projecting a revenue of $6.23 billion, reflecting a 12.52% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.11 per share and a revenue of $24.97 billion, indicating changes of +72.78% and +13.93%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Block. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Block is currently a Zacks Rank #2 (Buy).
Investors should also note Block's current valuation metrics, including its Forward P/E ratio of 21.97. This indicates a discount in contrast to its industry's Forward P/E of 23.48.
One should further note that SQ currently holds a PEG ratio of 0.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SQ's industry had an average PEG ratio of 1.43 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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) Falls More Steeply Than Broader Market: What Investors Need to Know
The latest trading session saw Block (SQ - Free Report) ending at $66.89, denoting a -1.99% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.06%.
Shares of the mobile payments services provider have appreciated by 5.98% over the course of the past month, outperforming the Business Services sector's gain of 0.9% and the S&P 500's gain of 1.96%.
The upcoming earnings release of Block will be of great interest to investors. The company's earnings report is expected on August 1, 2024. In that report, analysts expect Block to post earnings of $0.76 per share. This would mark year-over-year growth of 94.87%. At the same time, our most recent consensus estimate is projecting a revenue of $6.23 billion, reflecting a 12.52% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.11 per share and a revenue of $24.97 billion, indicating changes of +72.78% and +13.93%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Block. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Block is currently a Zacks Rank #2 (Buy).
Investors should also note Block's current valuation metrics, including its Forward P/E ratio of 21.97. This indicates a discount in contrast to its industry's Forward P/E of 23.48.
One should further note that SQ currently holds a PEG ratio of 0.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SQ's industry had an average PEG ratio of 1.43 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.