Block ended the recent trading session at $91.94, demonstrating a -0.24% swing from the preceding day’s closing price. This change lagged the S&P 500’s 0.55% gain on the day. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq gained 1.24%.
Market participants will be closely following the financial results of Block in its upcoming release. It is anticipated that the company will report an EPS of $0.82, marking an 82.22% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $6.11 billion, up 5.92% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Block. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the past month, there’s been a 0.7% fall in the Zacks Consensus EPS estimate. Block is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Block is at present trading with a Forward P/E ratio of 21.11. This indicates a discount in contrast to its industry’s Forward P/E of 25.08.
It’s also important to note that SQ currently trades at 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. Technology Services stocks are, on average, holding a PEG ratio of 1.54 based on yesterday’s closing prices.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 61, finds itself in the top 25% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Financial Market Newsflash
No financial news published today. Check back later.
