Square (SQ, $151.58) beat Q2 earnings estimates
Square Inc. posted second quarter earnings that beat analysts’ expectations.
The digital payments company’s earnings released one day ahead of schedule on what it called "early external access of the company’s quarterly financials' to the group's financials".
The Jack Dorsey-led company’s gross profit surged +28% year-over-year to $597 million. Its adjusted earnings for Q2 came in at 18 cents per share, down from the 21 cents posted in the similar quarter last year, but handily beating analysts' estimate of average adjusted loss per share of -5 cents. (Refinitiv poll of analysts). Its revenues climbed +64% to $1.92 billion, beating estimates.
A substantial part in the results can be attributed to the government’s Paycheck Protection program (PPP) stimulus measure against covid-19 economic impact. Square Capital said it processed around $873 million in PPP loans over the quarter. The overall quarterly gross payment volumes grew 17.5% to $26.8 billion.
According to Tickeron, SQ's Aroon indicator reaches into Uptrend on July 20, 2020
For traders, this could mean going long on the ticker or exploring call options in the next month. In 294 of 348 cases where SQ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 84%.
Current price $152.30 is above $82.69 the highest resistance line found by A.I. Throughout the month of 07/02/20 - 08/04/20, the price experienced a +21% Uptrend. During the week of 07/28/20 - 08/04/20, the stock enjoyed a +11% Uptrend growth.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator exceeded the 0 level on July 27, 2020. Traders may consider buying the ticker or exploring call options. In 61 of 78 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 78%.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SQ advanced for three days, in 275 of 341 cases, the price rose further within the following month. The odds of a continued Uptrend are 81%.
Bearish Trend Analysis
The RSI Indicator demonstrated that the ticker has entered the overbought zone. Expect a price pull-back in the near future.
The Stochastic Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Moving Average Convergence Divergence (MACD) crossed below the signal line. In 27 of 34 cases where SQ's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 79%.
The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 36 of 56 cases where SQ's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 64%.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 81%. During the last month, the daily ratio of advancing to declining volumes was 1.8 to 1.
The Tickeron PE Growth Rating for this company is 12 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. SQ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 52 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 90 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: SQ's P/B Ratio (33.21) is slightly higher than the industry average of (9.60). SQ has a moderately high P/E Ratio (224.64) as compared to the industry average of (71.31). Projected Growth (PEG Ratio) (0.13) is also within normal values, averaging (6.91). Dividend Yield (0.00) settles around the average of (0.32) among similar stocks. P/S Ratio (4.44) is also within normal values, averaging (5.41).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SQ’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock worse than average.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for XYZ turns positive, indicating new upward trend
XYZ saw its Momentum Indicator move above the 0 level on July 27, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 86 similar instances where the indicator turned positive. In of the 86 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where XYZ advanced for three days, in of 312 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 191 cases where XYZ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 58 cases where XYZ's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for XYZ turned negative on August 06, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where XYZ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
XYZ broke above its upper Bollinger Band on July 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. XYZ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.155) is normal, around the industry mean (24.022). P/E Ratio (141.196) is within average values for comparable stocks, (72.205). Projected Growth (PEG Ratio) (0.833) is also within normal values, averaging (1.917). XYZ has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.021). P/S Ratio (1.920) is also within normal values, averaging (132.417).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. XYZ’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
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General Information
a provider of credit card reader solutions for mobile devices
Industry ComputerCommunications
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