In the latest trading session, Square (SQ) closed at $171.02, marking a +0.67% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq gained 0.64%.
Coming into today, shares of the mobile payments services provider had gained 5.68% in the past month. In that same time, the Computer and Technology sector gained 4.11%, while the S&P 500 gained 3.25%.
Wall Street will be looking for positivity from SQ as it approaches its next earnings report date. This is expected to be November 5, 2020. In that report, analysts expect SQ to post earnings of $0.14 per share. This would mark a year-over-year decline of 44%. Our most recent consensus estimate is calling for quarterly revenue of $2.08 billion, up 64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.51 per share and revenue of $7.26 billion. These totals would mark changes of -36.25% and +53.94%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for SQ. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.55% higher. SQ is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that SQ has a Forward P/E ratio of 330.95 right now. Its industry sports an average Forward P/E of 82.44, so we one might conclude that SQ is trading at a premium comparatively.
It is also worth noting that SQ currently has a PEG ratio of 9.17. 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. SQ's industry had an average PEG ratio of 6.57 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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