Currently, Square Inc (NYSE:SQ) has a Strong Buy using the Portfolio Grader analytical stock evaluator. The system for fundamental and quantitative metrics used in this analytical tool assesses and ranks nearly 5,000 stocks each week. This represents no change from the previous week and is the same ranking SQ has had from Portfolio Grader for 8 months. Square Inc's Strong Buy recommendation is the outcome of a proprietary process of evaluation and produced results that were above average in 5 areas: an economic sector ranked above average in attractiveness, an industry group rated above average in attractiveness, a ranking in the company's sector that is in the top decile, ranking in its industry group that is in the top decile, and a numerical calculation of risk/reward that is very attractive; and produced below average outcomes in 1 area: an analytical score that is near average.
SQ is a constituent of the 114 company Information Technology Services GICS industry group, which is part of the 324 company GICS Technology Services sector. SQ has a market value of $16.9 billion which is in the top decile in its industry group The stock's current Portfolio Grader score places it 10 among the 114 companies in this industry group, putting it in the top decile.
Portfolio Grader currently ranks the Technology Services sector number 1 among the 20 sectors in its universe putting it atop all the GICS sectors. The Information Technology Services industry group is ranked 16 among the 129 industry groups within the GICS sectors, placing it above-average in terms of the Proprietary Quantitative Score scoring system.
SQ has received well above-average scores in 2, and above-average scores in 1 of the 8 fundamental areas appraised by Portfolio Grader in the ranking of company stocks.
The company's operational scores provide mixed results with a ranking for sales growth that is well above the industry average but rankings for operating margin and earnings growth are below average. Scores for visibility of earnings are mixed, with a ranking for earnings revisions and earnings surprises that are discernibly better than average, while the score for earnings momentum is worse than average. SQ's metrics for return on equity and cash flow are worse than its industry group average. These fundamental scores give Square a position in the top half of the industry group.
Portfolio Grader uses the Proprietary Quantitative Score to measure SQ's shares from the aspect of risk/reward. This exclusive scoring methodology assesses the relative value of the company's shares based on the recent $41.61 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Based on this risk/reward calculation, SQ currently scores well above-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.