Here’s Why Block (SQ) Maintained Upward Momentum

Soumya Eswaran
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ClearBridge Investments, an investment management company, released its “ClearBridge Value Equity Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy outperformed the Russell 1000 Value Index in the fourth quarter. On an absolute basis, the strategy has gained ten out of eleven sectors in which it was invested during the quarter. The financials and industrials sectors were the leading contributors while the energy sector detracted. Overall stock selection contributed to returns but sector allocation effects detracted on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.

ClearBridge Value Equity Strategy featured stocks like Block, Inc. (NYSE:SQ) in the fourth quarter 2023 investor letter. Based in Oakland, California, Block, Inc. (NYSE:SQ) is a technology company with a focus on financial services.  On March 22, 2024, Block, Inc. (NYSE:SQ) stock closed at $80.77 per share. One-month return of Block, Inc. (NYSE:SQ) was 8.18%, and its shares gained 25.42% of their value over the last 52 weeks. Block, Inc. (NYSE:SQ) has a market capitalization of $49.73 billion.

ClearBridge Value Equity Strategy stated the following regarding Block, Inc. (NYSE:SQ) in its fourth quarter 2023 investor letter:

"Stock selection in the financials sector proved to be the largest contributor to relative outperformance.  The sector also contained our top individual holding during the period: Block, Inc. (NYSE:SQ), whose stock price maintained its upward momentum after it announced that Square retailers saw substantial increases in holiday spending trends and transactions, and greater optimism for a soft landing helped alleviate investor concerns over consumer spending."

People using the Cash App paying for goods and services, highlighting the impact the of the company's payment tools.

Block, Inc. (NYSE:SQ) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Block, Inc. (NYSE:SQ) was held by 75 hedge fund portfolios, up from 60 in the previous quarter, according to our database.

We discussed Block, Inc. (NYSE:SQ) in another article and shared Cathie Wood’s stock portfolio for 2024. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

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