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Analysts Say Block Inc. (NYSE: SQ) Should Remain On Your Watch List

Block Inc. (NYSE:SQ) traded at $81.30 at last check on Tuesday, January 24, made a downward move of -0.44% on its previous day’s price.

Looking at the stock we see that its previous close was $81.66 and the beta (5Y monthly) reads 2.41 with the day’s price range being $76.72 – $81.67. In terms of its 52-week price range, SQ has a high of $149.00 and a low of $51.34. The company’s stock has gained about 32.98% over that past 30 days.

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Block Inc. has a market cap of $45.49 billion and is expected to release its quarterly earnings report on Feb 22, 2023 – Feb 27, 2023. Estimates by analysts give the company expected earnings per share (EPS) of $0.23, with the EPS growth for the year raised at $0.88 for 2022 and $1.53 for next year. These figures represent -48.50% and 73.90% growth in EPS for the two years respectively.

Analysts tracking the company’s growth have also given it a consensus growth in revenue estimated at $4.49 billion, with a low of $4.17 billion and a high of $4.82 billion. According to analyst consensus estimates figures, the company’s yearly revenue forecast for 2022 is expected to hit $17.57 billion, or -0.50% down from figures reported last year.

There have been no upward and no downward revisions for the stock’s EPS in last 7 days, something that reflects the nature of company’s price movement in short term. On the other hand, looking at the outlook for the SQ stock, short term indicators assign the stock an average of 50% Buy, while medium term indicators assign it an average of 50% Buy. Long term indicators on average place the stock in the category of 50% Buy.

Based on estimates by 49 analysts, where scores have ranged from 1.00 for a strong buy to 5.00 for a strong sell, 10 have rated the Block Inc. (SQ) stock as a Hold, while 31 rate it as a Buy. 5 analyst(s) rate it as overweight while 0 of them rated it as underweight, whereas 3 suggest the stock as a Sell. The stock has an overall rating of Overweight and investors could take advantage and scoop up stock of the company.

Looking further, we note the current price level is 19.47% off its SMA20 and 22.46% from its 50-day simple moving average. The RSI (14) is pointing at 70.58 while the volatility over the past week is 5.60% and jumps to 4.95% over the past one month. The beta value is 2.29, while the average true range (ATR) is currently pointing at 3.70. The average price target for the stock over the next 12 months is $89.32, with the estimates having a low of $51.00 and a high of $150.00. These price ends are 37.27% and -84.5% off the today’s price level respectively, although investors could be excited at the prospect of a -10.7% if the SQ share price touches on the median price of $90.00.

Let’s briefly compare Block Inc. (SQ) stock to its peers. We find that today’s price change of -0.44% and -35.99% over the past 12 months for SQ. Another of its peers Open Text Corporation (OTEX) has dropped -0.74% today, and was -27.38% down over the past year, while Palo Alto Networks Inc. (PANW) is also up 1.27% yet, while its price remains in the red at -13.79% over the same period. In contrast to these companies, both the S&P 500 Index and the Dow Jones Industrial are today at -0.40% and -0.23%, respectively, in early deals.

Coming back to Block Inc. (NYSE:SQ), we note that the average 3-month trading volume was 12.56 million, while that of the preceding 10-day period stands at 12.03 million. Current shares outstanding are 592.67 million.

The insiders hold 0.30% of the company’s shares while institutions hold 67.50%. The data shows that short shares as of Oct 13, 2022, stood at 26.07 million at a short ratio of 1.75. This represents a 4.42% short interest in shares outstanding on Oct 13, 2022. Shares short rose in October from the previous month at 25.13 million. Investors should be excited about this stock as its upside potential is great, with today’s price pushing the stock 29.95% up in year-to-date price movement.

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