#5 - Square (NYSE:SQ)
Square (NYSE: SQ) – Anytime you create a new platform you have a good story to tell investors. Such is the case of Square, which offers a peer-to-peer payment platform for small businesses. It also has recently signed a deal with eBay, and analysts see room for the company to expand into other markets such as digital trading and cryptocurrencies. With exciting news like this, it’s not surprising that their stock is up 184% in the last 12 months. As a long-term investment, Square gives investors a lot of things to like. However, in the short-term, its valuation can be somewhat like sticking a square peg in a round hole. The question isn’t whether they are profitable, it is that their valuation is all out of whack at the moment. Remember, corrections are agnostic; they bring balance where there is an imbalance. The good news is that the company’s bottom line is anticipated to jump by $0.33 a share to $0.78 in 2019. The bad news is that it still puts their forward-looking P/E at 91:1. Factor in their trailing price/sales ratio of 10.9 and you can see that the valuation problem isn’t going away anytime soon.
About Block
Square, Inc provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions.
Read More - Current Price
- $92.26
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 24 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $91.18 (1.2% Downside)
