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Square (SQ) Dips More Than Broader Markets: What You Should Know
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Square (SQ - Free Report) closed the most recent trading day at $65.01, moving -1.16% from the previous trading session. This move lagged the S&P 500's daily loss of 0.92%. At the same time, the Dow lost 1.17%, and the tech-heavy Nasdaq lost 0.28%.
Coming into today, shares of the mobile payments services provider had gained 40.5% in the past month. In that same time, the Computer and Technology sector gained 16.87%, while the S&P 500 gained 15.69%.
SQ will be looking to display strength as it nears its next earnings release, which is expected to be May 6, 2020. The company is expected to report EPS of $0.13, up 18.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.30 billion, up 36.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.51 per share and revenue of $4.92 billion. These totals would mark changes of -36.25% and +4.46%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for SQ. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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. The Zacks Consensus EPS estimate has moved 470.05% lower within the past month. SQ is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, SQ is holding a Forward P/E ratio of 130.24. This valuation marks a premium compared to its industry's average Forward P/E of 44.51.
Investors should also note that SQ has a PEG ratio of 5.4 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.8 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 38, putting it in the top 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Square (SQ) Dips More Than Broader Markets: What You Should Know
Square (SQ - Free Report) closed the most recent trading day at $65.01, moving -1.16% from the previous trading session. This move lagged the S&P 500's daily loss of 0.92%. At the same time, the Dow lost 1.17%, and the tech-heavy Nasdaq lost 0.28%.
Coming into today, shares of the mobile payments services provider had gained 40.5% in the past month. In that same time, the Computer and Technology sector gained 16.87%, while the S&P 500 gained 15.69%.
SQ will be looking to display strength as it nears its next earnings release, which is expected to be May 6, 2020. The company is expected to report EPS of $0.13, up 18.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.30 billion, up 36.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.51 per share and revenue of $4.92 billion. These totals would mark changes of -36.25% and +4.46%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for SQ. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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. The Zacks Consensus EPS estimate has moved 470.05% lower within the past month. SQ is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, SQ is holding a Forward P/E ratio of 130.24. This valuation marks a premium compared to its industry's average Forward P/E of 44.51.
Investors should also note that SQ has a PEG ratio of 5.4 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.8 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 38, putting it in the top 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.