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.
SQ sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for SQ moved above the 200-day moving average on November 12, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 06, 2024. You may want to consider a long position or call options on SQ as a result. In of 73 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SQ advanced for three days, in of 319 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 270 cases where SQ 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 10-day RSI Indicator for SQ moved out of overbought territory on December 09, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 60 cases where SQ'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 SQ turned negative on December 10, 2024. 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 47 similar instances when the indicator turned negative. In of the 47 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 SQ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SQ broke above its upper Bollinger Band on December 04, 2024. 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.
The Tickeron Price Growth Rating for this company is (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 Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (2.682) is normal, around the industry mean (30.997). SQ's P/E Ratio (4073.000) is considerably higher than the industry average of (160.694). Projected Growth (PEG Ratio) (0.918) is also within normal values, averaging (2.755). Dividend Yield (0.000) settles around the average of (0.084) among similar stocks. P/S Ratio (2.282) is also within normal values, averaging (57.985).
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. 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 87, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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.
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General Information
a provider of credit card reader solutions for mobile devices
Industry PackagedSoftware