Here's Why Block (SQ) Fell More Than Broader Market
The most recent trading session ended with Block (SQ) standing at $73.91, reflecting a -1% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.18% for the day. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, added 0.27%.
The mobile payments services provider's shares have seen an increase of 10.67% over the last month, surpassing the Business Services sector's gain of 4.62% and the S&P 500's gain of 4.46%.
Analysts and investors alike will be keeping a close eye on the performance of Block in its upcoming earnings disclosure. The company is expected to report EPS of $0.88, up 60% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $6.17 billion, indicating a 9.77% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.59 per share and a revenue of $24.52 billion, representing changes of +99.44% and +11.89%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Block. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been a 1.05% fall in the Zacks Consensus EPS estimate. Block currently has a Zacks Rank of #3 (Hold).
Investors should also note Block's current valuation metrics, including its Forward P/E ratio of 20.78. This denotes a discount relative to the industry's average Forward P/E of 25.76.
One should further note that SQ currently holds a PEG ratio of 0.49. 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. The Technology Services industry had an average PEG ratio of 1.5 as trading concluded yesterday.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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Block, Inc. (SQ) : Free Stock Analysis Report