Ticker delayed 20 minutes
|Avg Daily Volume: 7,734,654 Market Cap: 26.74B|
Sector: None Short Interest: 10.68
THIS QTR: EPS: .20/share REV: 596.38/M
LAST QTR: EPS: .16/share ACTUAL: .21/share (BEAT)
NEXT QTR: EPS: .25/share REV: 621.24/M
FULL YR: EPS: .77/share REV: 2,270/M
*These are the base metrics we will be watching against the actual release numbers
BEAT/MISS RECORD: 60% OF THE TIME THEY BEAT ESTIMATES
PRIOR ‘JUMP ZONE’ MOVES (LAST 3 QTRS %) -16.95, -10.26, -5.98
EXPECTED JUMP MOVE: 12-15%
Links To Latest News and Headlines
One of 2020’s most prominent trends has been the rise of digital payments. Driven by the continued success of it Cash App, Square (SQ) has made the most of this opportunity. The fintech player has experienced strong growth and as a result the stock has accumulated year-to-date gains of a massive 171%.Heading into next week’s Q3 earnings (Nov 5 AMC), Deutsche Bank analyst Bryan Keane anticipates another strong showing from the payments industry disruptor.”We expect SQ to continue executing with improving Seller trends and Cash App strength from stimulus and increased demand for the company’s digital solutions driving stronger long term growth rates than before the pandemic,” Keane noted.In Q3, Keane expects Square to report revenue of $1.913 billion, a 51% year-over-year uptick, and adj. EPS of $0.15 (Street has $0.16) “driven by strong Gross Profit growth of ~33% Y/Y from continued improvement in Seller volumes.”Keane expects Seller Gross Profit growth to be up 3.8% year-over-year, a “conservative estimate” which he potentially sees rising to 7.2%.Moreover, the US Census Bureau’s latest data displayed a 77.4% year-over-year increase in 3Q20 business applications – a promising sign for future Seller growth potential.“Seller should also continue to benefit from strong growth in online channels and international strength as well as improving retention and consumer spend over time,” Keane added.However, Seller numbers pale in comparison to Square’s rising star – the peer-to-peer Cash App.In July, Cash App Gross Profit growth cannonballed to 200% year-over-year. Although Keane doesn’t expect the same amount of acceleration in Q3, the analyst calls for 119% year-over-year growth with the possibility of “upside potential to +189% Y/Y.”“Importantly,” the 5-star analyst notes, “Digital banking adoption and Cash App use for small businesses through Business Accounts has taken off accelerating through the pandemic which we expect to continue.”Cash App adoption has been helped by the fed’s stimulus efforts and Keane expects the one-time benefits will result in “significant long-term engagement expansion and accelerated lifetime value.“Furthermore, another round of stimulus could potentially increase Cash App growth.All in all, Keane reiterated a Buy on SQ shares and with Cash App “driving significant outperformance and the Seller recovery looking more likely to become the next leg of growth,” bumped the price target from $180 to $215. What’s in it for investors? Upside of 26.5%. (To watch Keane’s track record, click here)Square has decent support amongst Keane’s colleagues with 16 Buys, 6 Holds and 2 Sells all coalescing to a Moderate Buy Consensus rating. However, most feel Square has rallied enough for now. The $170.55 average price target indicates shares will remain range bound for the foreseeable future. (See Square stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
What should investors expect from Square’s Q3 results to help decide if now might be time to buy…
Square (SQ) doesn’t possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Today, let us look at why a payment solutions provider, a cloud network business, and a coronavirus vaccine developer are among the best trendy stocks for investors to buy now. Square’s (NYSE: SQ) bottom line has been on a tear this year, as the payment solutions provider saw record demand from small businesses for its point of sale (POS), e-commerce, and invoice services. There are now 37 million customers using the company’s Cash App and Cash Card per month.
Square (SQ) closed the most recent trading day at $171.02, moving +0.67% from the previous trading session.
StockJumpers analysis and trade plans are uploaded generally 1 HOUR (3PM EST) for most events.
“I’m sorry, this content is for members only. To access this content, you must log in with your membership credentials – OR if you are not a member yet, visit our registration page here and get signed up Looking forward to having you on-board ASAP”
There is a significant amount of data behind the scenes involved in the analysis and trade plan tab above, that does not get put into the report. Too much information for traders often confuses things – so this is striped down to only what it needed to make the best possible decision(s) on trading the trajectory.