Exploring the Powerful Long-Term Momentum of Block (SQ) Stock

Investing in the stock market is a journey that requires discernment and access to reliable analysis, especially when looking for stocks that provide lasting value and momentum. One such stock that has been making waves for momentum investors is Block, Inc. SQ, formerly known as Square, Inc.

Understanding Zacks Style Scores

An integral tool in identifying formidable stocks like SQ comes from Zacks Style Scores. This evaluation system aids investors in classifying stocks based on their intrinsic qualities across different investment strategies. Each stock earns a score from A to F in categories such as Value, Growth, and Momentum, with A being the highest score, indicating a higher likelihood to outperform the market.

Value Score looks at ratios like Price-to-Earnings (P/E) and Preis-to-Sales (P/S) to unearth stocks that are trading at appealing prices. Growth Score, on the other hand, forecasts the stock's future performance by examining the company’s financial health. Lastly, Momentum Score leverages trends in the stock's price and earnings outlook, which is particularly attractive to momentum investors who follow the adage 'the trend is your friend.'

The Zacks Rank Synergy with Style Scores

The Zacks Rank system complements the Style Scores by focusing on earnings estimate revisions to provide a robust stock-rating model. A Zacks Rank #1 (Strong Buy) or #2 (Buy) combined with top-tier Style Scores of A or B, suggests a stock with promising potential for investors. This ranking is backed by the exceptional average annual return of +25.41% since 1988 seen in #1 Rank stocks.

Why SQ Stands Out

SQ, operating out of San Francisco, California, offers an ecosystem of financial and marketing services tailored to assist sellers in expanding their businesses. With a VGM Score of B and a Zacks Rank of #2 (Buy), SQ presents itself as an attractive option for investment.

The stock has demonstrated a notable momentum with a 12% increase over the past month and an impressive average earnings surprise of 6.3%. What's more, fiscal projections are on the rise, with earnings estimates for 2023 climbing higher as a result of positive revisions from analysts.

With such a robust earnings outlook, a high Momentum Style Score of A, and a strong presence in the Business Services sector, SQ should certainly be on the radar for investors seeking stocks with long-term potential and high momentum.

Investing, Momentum, Stocks