Innovative payments processor Block is putting up outstanding profit growth numbers. That includes a 133% surge in earnings last quarter, the latest in a string of outsize earnings reports. Block is known for its popular buy now, pay later programs.
Over the last four quarters Square parent Block reported EPS gains ranging from 31% to 133% last quarter. During that time, revenue grew 24%, 24%, 19% and 11% in its most recent quarter, to $6.16 billion.
On Thursday, the Relative Strength (RS) Rating for Block stock climbed into a new percentile, as it got a lift from 70 to 75. The 75 RS Rating shows that Block topped 75% of stocks in IBD's database for price performance this past year. Its other ratings are even higher.
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Block Has Near-Best EPS Rating
Block sports a near-best 98 EPS Rating out of 99, an 89 Composite Rating and a B Accumulation/Distribution Rating. The B rating shows that big funds are buying more Block shares than selling.
Block's Square brand mobile card reader, thought to be the first of its kind, is used by more than 4 million businesses, according to the company. Additionally, companies use Block's point-of-sale software to manage receipts and sales report. And it provides sales report analytics and other feedback.
Block stock is building a cup without handle with an 87.52 entry. Its stock leapt about 90% from the end of October last year to close at 73.68 Thursday. See if it can break out in volume at least 40% higher than normal.
Keep an eye out for the company's next round of numbers on or around Oct. 31.
Among Top 6 In Its Industry Group
The company earns the No. 6 rank among its peers in the 37-stock Finance-Card/Payment Processing industry group. Shift4 Payments, Paymentus Holdings and PayPal Holdings are among the top 5 highly rated stocks within the group.
IBD's proprietary Relative Strength Rating measures price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the last 52 weeks compares to all the other stocks in IBD's database. Market research shows that the best-performing stocks tend to have an RS Rating of at least 80 as they begin their largest price moves. See if Block can continue to climb and clear that threshold.
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