Primed For An Upswing? Analysts Take Aim at Square, Inc. (NYSE:SQ)

When conducting stock research, investors may want to take a look at what the covering analysts are saying about the company. Zacks Research provides an average broker rating which is compiled using polled sell-side analysts.  After a recent scan, we can see that the current ABR for Square, Inc. (NYSE:SQ) is 2.28. Research firms may use various terminologies to describe their stock recommendations. This particular rating falls on a numerical scale from 1 to 5. A 1 rating would point to a Strong Buy, and a score of 5 would indicate a Strong Sell rating. The average broker rating helps investors by offering a general feel for sell-side sentiment on company shares. We have also noted that 14 analysts currently have the stock rated as a Buy or Strong Buy.

With most types of investments, there is typically some level of risk. This is no different when dealing with the stock market. Investors have to decide how much risk is acceptable and plan accordingly. Many new stock market investors face the challenge of deciding where to begin. Following strategies that have proven to work in the past may be one way to go. Many investors will look to mimic the strategies of the most celebrated investors. Although this may be a good way to start, it may be necessary to fully understand every aspect that those successful investors examine. Blindly following trading plans without doing the proper research can lead to future trouble down the line if there is indeed a market shake-up.

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 $44.75. 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 $76.65 level. Investors may also want to track historical price activity. Over the past 12 weeks, the stock has changed 37.12%. Looking further back to the beginning of the calendar year, we note that shares have moved 36.66%. Over the previous 4 weeks, shares have seen a change of 1.3%. Over the last 5 trading sessions, the stock has moved 3.43%. 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 $87.44 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.

Shifting gears, we can see that the current quarter EPS consensus estimate for Square, Inc. (NYSE:SQ) is 0.08. This EPS estimate is using 12 sell-side analysts polled by Zacks Research. For the prior reporting period, the company posted a quarterly EPS of 0.02. 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.

One of the biggest downfalls of the individual investor is not being able to take losses when it becomes necessary. Of course nobody wants to take a loss, but the repercussions of not letting go of a losing stock can end up sealing the demise of the well-intentioned investor. Many professionals would probably agree that the pain of realizing a loss is more intense than the joy of picking a winner. Investors who become reluctant to sell losers may be delaying the inevitable and essentially suffocating the portfolio. Not addressing the losing side can have severe negative effects on the long-term health of the portfolio. Investors may have to find a way to face the music and sell when they realize that a trade has gone sour.

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