Square, Inc. (NYSE:SQ): Tracking the Average Broker Recommendation on This Stock

Investors might be interested in how sell-side analysts are viewing shares of Square, Inc. (NYSE:SQ). Taking a peek at the current consensus rating, we can see that the ABR is 2.17. This average rating is provided by Zacks Research. This simplified scale ranges from one to five which translates brokerage firm Buy/Sell/Hold recommendations into an average broker rating. A low number in the 1-2 range typically indicates a Buy, 3 represents a Hold and 4-5 indicates a consensus Sell rating. In terms of the number of analysts that have the stock pegged as a Buy or Strong Buy, we note that the number is presently 15.

Once the individual investor has figured out a plan to analyze stocks, they can begin to start building a portfolio. Because not everyone has the same goals, time horizons, and risk appetites, it is hard to provide one answer to the question of how to construct the perfect winning stock portfolio. Although every investor’s goal is typically to beat the market and secure consistent profits, this is no easy accomplishment. Professionals have spent many years studying the ins and outs of the stock market. There are certain strategies that may work better during different market cycles, but it is hard to say with any certainty that they will continue to work in the future. Markets and economic landscapes are constantly changing, and being able to keep up with the changes might involve tweaking strategies that have previously been successful but no longer are.

Shifting gears, we can see that the current quarter EPS consensus estimate for Square, Inc. (NYSE:SQ) is 0.12. This EPS estimate is using 11 sell-side analysts polled by Zacks Research. For the prior reporting period, the company posted a quarterly EPS of 0.13. As we move through earnings season, all eyes will be on the company to see if they can beat analyst estimates and show improvement from the last quarter. When a company reports actual earnings numbers, the surprise factor can cause a stock price to realize increased activity. Investors and analysts will be closely watching to see how the earnings results impact the stock after the next release. Many investors will decide to be cautious around earnings releases and delay buy/sell moves until after the stock price has steadied.

Viewing some popular support and resistance marks on shares of Square, Inc. (NYSE:SQ), we can see that the 52-week high is presently $99.01, and the 52-week low is currently $39.5. When the stock is trading near the 52-week high or 52-week low, investors may be on the lookout for a potential break through the level. Looking at recent action, we can see that the stock has been trading near the $76.22 level. Investors may also want to track historical price activity. Over the past 12 weeks, the stock has changed 1.61%. Looking further back to the beginning of the calendar year, we note that shares have moved 35.89%. Over the previous 4 weeks, shares have seen a change of 35.89%. Over the last 5 trading sessions, the stock has moved 5.51%. Investors will be monitoring stock activity over the next few days to try and gauge which way the momentum is shifting.

Wall Street analysts tracking shares of Square, Inc. (NYSE:SQ) have been closely monitor company activities and fundamentals. They often create research reports to assist with investment decisions. On a consensus basis, analysts have set a target price of $87.04 on the stock. This number may be different from the First Call consensus target estimate. Analysts that routinely cover the company may use different techniques in order to create a future target price. Because of the different methods, price targets may differ greatly from one analyst to another.  

One of the most basic ideas that goes along with the stock market is buy low and sell high. Although this advice is overly obvious, many new investors will do the exact opposite when trading stocks. Inexperienced investors have the tendency to buy stocks that have been performing the best recently. This may be caused by certain factors such as not looking into the underlying fundamentals or just hoping that the stock will continue to rise. Rookie investors may also make the error of holding onto shares that continue to drop in value. Instead of cutting the loser loose, they hold off with the hope that eventually the stock will at least get back to the breakeven point. 

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