Squarespace (SQSP) Stock Sinks As Market Gains: What You Should Know

Squarespace (SQSP) ended the recent trading session at $30.94, demonstrating a -0.99% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 0.32%.

Shares of the a software company have depreciated by 3.93% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.15% and the S&P 500's gain of 2.99%.

Investors will be eagerly watching for the performance of Squarespace in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 28, 2024. The company is expected to report EPS of $0.17, up 342.86% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $263.79 million, up 15.29% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Squarespace. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Squarespace boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Squarespace is presently being traded at a Forward P/E ratio of 68.83. For comparison, its industry has an average Forward P/E of 16.97, which means Squarespace is trading at a premium to the group.

Investors should also note that SQSP has a PEG ratio of 1.65 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software and Services industry had an average PEG ratio of 0.99 as trading concluded yesterday.

The Internet - Software and Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 50, finds itself in the top 20% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SQSP in the coming trading sessions, be sure to utilize Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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