In the latest trading session, Square (SQ) closed at $210.21, marking a -1.83% move from the previous day. This change lagged the S&P 500’s daily loss of 0.18%.
Prior to today’s trading, shares of the mobile payments services provider had lost 2.96% over the past month. This has lagged the Computer and Technology sector’s gain of 2.1% and the S&P 500’s gain of 0.04% in that time.
Wall Street will be looking for positivity from SQ as it approaches its next earnings report date. The company is expected to report EPS of $0.31, up 72.22% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.86 billion, up 152.67% from the year-ago period.
SQ’s full-year Zacks Consensus Estimates are calling for earnings of $1.50 per share and revenue of $19.65 billion. These results would represent year-over-year changes of +78.57% and +106.89%, respectively.
Investors might also notice recent changes to analyst estimates for SQ. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 14.94% higher. SQ is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SQ is currently trading at a Forward P/E ratio of 142.99. For comparison, its industry has an average Forward P/E of 66.88, which means SQ is trading at a premium to the group.
Meanwhile, SQ’s PEG ratio is currently 3.03. 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 3.24 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 195, putting it in the bottom 24% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Square, Inc. (SQ) : Free Stock Analysis Report
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