Yahoo Finance Here's Why Squarespace (SQSP) Gained But Lagged the Market Today
Squarespace (SQSP) closed the most recent trading day at $28.63, moving +0.56% from the previous trading session. This change lagged the S&P 500's 0.81% gain on the day. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 1.35%.
The a software company's stock has dropped by 6.84% in the past month, falling short of the Computer and Technology sector's loss of 6.4% and the S&P 500's loss of 6.19%.
The investment community will be closely monitoring the performance of Squarespace in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.17, marking a 142.86% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $252.37 million, up 15.93% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.29 per share and a revenue of $993.36 million, representing changes of +252.63% and +14.58%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Squarespace. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Squarespace is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Squarespace is currently exchanging hands at a Forward P/E ratio of 99.89. This valuation marks a premium compared to its industry's average Forward P/E of 23.42.
Investors should also note that SQSP has a PEG ratio of 5.93 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software and Services stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Squarespace, Inc. (SQSP) : Free Stock Analysis Report
