Q2 STOCKS TO BUY

Buyout Buzz Boosts Square Stock Ahead of Earnings

The shares are now back above the key 80-day moving average

Apr 27, 2018 at 9:54 AM
facebook X logo linkedin


Ahead of its first-quarter earnings report, due out after the close next Wednesday, May 2, Square Inc (NYSE:SQ) said it is buying website-building firm Weebly in a cash-and-stock deal valued at $365 million. The purchase will allow the payment processor to create a platform where small business owners can create websites and online stores. The news is being well-received, too, with SQ stock up 3.7% out of the gate to trade at $48.47.

This positive price action is nothing new for Square stock, though. Year-over-year, the shares have surged roughly 166%, and topped out at a record high of $58.45 on March 21. After hitting this milestone, the equity pulled back amid broader tech headwinds, but found a foothold atop -- and bounced from -- its 120-day moving average, and is now back above its historically bullish 80-day trendline.

There's plenty of fuel to keep today's rally going, especially if Square turns in another well-received quarterly report next week (the stock has had a positive earnings reaction in six of the last eight quarters). For starters, there are nearly 36 million SQ shares dedicated to short interest. This accounts for a healthy 13.6% of the stock's available float, and would take almost four days to cover, at the average pace of trading.

Plus, 13 analysts still maintain "hold" or "strong sell" recommendations, while the average 12-month price target of $49.39 sits just above Square's current price. This leaves the door open for upgrades and/or price-target hikes to draw more buyers to SQ's table.

And those looking to bet on Square with options are in luck, considering the tech stock has consistently rewarded premium buyers over the past year. The equity's Schaeffer's Volatility Scorecard (SVS) reading stands at a lofty 97 out of a possible 100, meaning SQ has tended to make outsized moves over the last 12 months, relative to what the options market has priced in.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter