Square (SQ) closed the most recent trading day at $69.29, moving +0.87% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 0.2%.
Prior to today's trading, shares of the mobile payments services provider had gained 7.4% over the past month. This has outpaced the Computer and Technology sector's gain of 6.56% and the S&P 500's gain of 3.25% in that time.
Wall Street will be looking for positivity from SQ as it approaches its next earnings report date. In that report, analysts expect SQ to post earnings of $0.21 per share. This would mark year-over-year growth of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $1.18 billion, up 26.67% from the prior-year quarter.
Any recent changes to analyst estimates for SQ should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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.
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 21.11% lower within the past month. SQ is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note SQ's current valuation metrics, including its Forward P/E ratio of 73.8. For comparison, its industry has an average Forward P/E of 58.24, which means SQ is trading at a premium to the group.
Meanwhile, SQ's PEG ratio is currently 2.22. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.63 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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