Square (SQ) Outpaces Stock Market Gains: What You Should Know

·3 min read

Square (SQ) closed at $247.41 in the latest trading session, marking a +1.93% move from the prior day. This move outpaced the S&P 500's daily gain of 1.71%.

Coming into today, shares of the mobile payments services provider had lost 2.44% in the past month. In that same time, the Computer and Technology sector lost 4.5%, while the S&P 500 lost 2.25%.

Wall Street will be looking for positivity from SQ as it approaches its next earnings report date. This is expected to be November 4, 2021. On that day, SQ is projected to report earnings of $0.40 per share, which would represent year-over-year growth of 17.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.51 billion, up 48.76% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.85 per share and revenue of $18.8 billion, which would represent changes of +120.24% and +97.93%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for SQ. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.01% higher within the past month. SQ is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note SQ's current valuation metrics, including its Forward P/E ratio of 131.42. This valuation marks a premium compared to its industry's average Forward P/E of 60.64.

Investors should also note that SQ has a PEG ratio of 4.19 right now. 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 Internet - Software industry currently had an average PEG ratio of 4.19 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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