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Square (SQ) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Square (SQ) closed at $263.39, marking a +0.53% move from the previous day. This change outpaced the S&P 500's 0.18% gain on the day.

Coming into today, shares of the mobile payments services provider had gained 1.51% in the past month. In that same time, the Computer and Technology sector lost 1.76%, while the S&P 500 gained 2.96%.

SQ will be looking to display strength as it nears its next earnings release, which is expected to be November 4, 2021. The company is expected to report EPS of $0.40, up 17.65% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.51 billion, up 48.76% from the prior-year quarter.

SQ's full-year Zacks Consensus Estimates are calling for earnings of $1.86 per share and revenue of $18.8 billion. These results would represent year-over-year changes of +121.43% and +97.93%, respectively.

It is also important to note the recent changes to analyst estimates for SQ. 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 shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.56% higher within the past month. SQ is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, SQ currently has a Forward P/E ratio of 141.24. This valuation marks a premium compared to its industry's average Forward P/E of 71.78.

Also, we should mention that SQ has a PEG ratio of 4.63. 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. SQ's industry had an average PEG ratio of 4.77 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 30% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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