Squarespace (SQSP) Declines More Than Market: Some Information for Investors
Squarespace (SQSP) closed the most recent trading day at $27.86, moving -1.21% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.48%. At the same time, the Dow lost 1.12%, and the tech-heavy Nasdaq gained 0.38%.
Shares of the a software company have depreciated by 3.06% over the course of the past month, outperforming the Computer and Technology sector's loss of 3.16% and lagging the S&P 500's loss of 2.65%.
Market participants will be closely following the financial results of Squarespace in its upcoming release. The company plans to announce its earnings on November 7, 2023. The company is forecasted to report an EPS of $0.12, showcasing a 71.43% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $252.13 million, showing a 15.81% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.29 per share and a revenue of $993.1 million, representing changes of +252.63% and +14.55%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Squarespace. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.35% increase. Squarespace presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Squarespace is currently being traded at a Forward P/E ratio of 98.6. For comparison, its industry has an average Forward P/E of 23.13, which means Squarespace is trading at a premium to the group.
One should further note that SQSP currently holds a PEG ratio of 5.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software and Services industry had an average PEG ratio of 1.27 as trading concluded yesterday.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 50, finds itself in the top 20% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Squarespace, Inc. (SQSP) : Free Stock Analysis Report
