JPMorgan Sees 24% Upside as Block Stock (XYZ) Joins the SPX Index
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
S&P 500 Inclusion Supports Bullish Outlook
Huang, a 4.5-rated analyst, believes Block's inclusion in the index is a clear positive for the stock. Now that Block will join the index on July 23, he expects index funds to buy over 54 million shares, which is more than seven times the stock's usual daily volume. This move should boost liquidity and lift the share price, he said.
The analyst also sees growing momentum in Block's business, helped by faster product rollouts and better marketing efforts.
In his view, the company deserves a higher valuation multiple. His $90 price target is based on a 5x multiple of Block's forward gross profit, which is still below the 7–9x range that many fintech peers trade at.
What's Next for Block Stock?
The company is expected to release its second-quarter results on August 7. Wall Street expects Block to report earnings per share (EPS) of $0.67, indicating a year-over-year decline of about 28%.
Meanwhile, analysts project Q2 revenues at $6.27 billion, according to the TipRanks Analyst Forecasts Page. The figure marks a year-over-year increase of about 1.8%.
Is Block Stock a Good Investment?
On TipRanks, XYZ stock has a Moderate Buy consensus rating based on 28 Buys, six Holds, and two Sells assigned in the last three months. The average XYZ stock price target of $71.29 indicates a 2.1% downside risk.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
2 minutes ago
- Bloomberg
US Stocks Fall as Record Rally Loses Steam Amid Earnings
US equities fell on Tuesday, with a rally that has powered indexes to fresh records losing steam as investors pored over corporate earnings. The S&P 500 Index was down 0.2% as of 9:52 a.m. in New York. The tech-heavy Nasdaq 100 Index was down 0.6%.
CNBC
2 minutes ago
- CNBC
How's the consumer doing? Capital One will soon give the Street a fresh look
Club holding Capital One will unveil its second-quarter earnings report after the bell Tuesday, offering Wall Street a crucial look into the financial pulse of the U.S. consumer. Capital One's financials don't just give investors an understanding of the company's performance. As one of America's largest credit card issuers — with a more diverse client base than affluent-focused American Express — Capital One's release is also a barometer for assessing the impact of ongoing economic uncertainty on its customers' spending habits. Insights like these are especially important as the market continues to speculate over President Donald Trump's tariffs, the Federal Reserve's next monetary policy decision, persistent conflict overseas and the start of another quarterly earnings season. But a mixed bag of recent economic data has only complicated things further. On one hand, inflation picked up in June as tariffs begin to slowly work their way through the economy. Despite the Fed's best efforts, the rise in both headline and core CPI showed investors last week that inflation still isn't fully under control. Meanwhile, the labor market has proved to be more resilient as U.S. payrolls increased more than expected last month. There's also been a five-week decline in initial jobless claims, suggesting that layoffs aren't happening at a concerning pace. At the same time, continuing claims do remain elevated. That could indicate those who do lose their jobs are having difficulties landing new roles. The stock market has taken the murky backdrop in stride, though. The S & P 500 and tech-heavy Nasdaq Composite both registered record closes Monday. The S & P 500 was basically flat Tuesday, while the Nasdaq was slightly lower. Capital One's upcoming release, however, should give investors a chance to cut through all the noise. Here are four ways the second-quarter results can provide a snapshot of U.S. consumer health. COF YTD mountain Capital One (COF) year-to-date performance Late payments Each quarter, management shares delinquency rates for its credit card and consumer banking businesses. Capital One reports its 30-day delinquency rates – known as the percentage of total outstanding credit card balances that are at least 30 days past due. If this rate rises, it can be a sign of financial stress for the U.S. consumer. CEO Richard Fairbank said so himself during an April conference call. He described delinquencies as "the best leading indicator" for a customers' financial health. "Our delinquencies were stable on a seasonally adjusted basis throughout most of 2024," Fairbank said. "And ... they improved relative to our seasonal expectation over the last six months." In the first quarter of 2025, Capital One's 30-day delinquency rate for its credit card division came in at 4.27%, down from 4.54% the quarter prior. Delinquency rates are important for Capital One shareholders like us, too. That's because the credit card business is the company's biggest money maker – making up roughly 70% of its overall revenues last quarter – from interest-based income and various fees on their offerings. Some on Wall Street seem optimistic about Capital One's credit quality. Ahead of quarterly earnings, TD Cowen upgraded the financial stock to a buy rating from hold. "Delinquencies have continued to demonstrate stability, and card losses have been outperforming expectations," the analysts wrote in a July 8 research note. TD Cowen also praised Capital One's recently completed $35 billion acquisition of Discover — a key reason we first initiated a position in the stock. Potential losses Additionally, if Capital One is worried that more customers are going to struggle paying back their loans in the future, they will park more money away to cover those potential losses. The amount the company sets aside is called its credit loss provision, and they report the number reach quarter. If management raises these, it could serve as an early warning that consumers can't pay back their debts. Provision for credit losses came in lower than analysts expected at $2.3 billion last quarter, down from roughly $2.7 billion in the quarter prior. Car market Third, there's auto loan originations. If auto lending increases, it can suggest consumers feel confident enough in the economy to make larger purchases. This barometer for consumer health, however, has been complicated with tariffs. Some may have felt rushed to buy vehicles as the deadline for larger levies on top U.S. trading partners have loomed. In the case of Capital One, the company reported a 22% year over-year-increase in auto loan originations last quarter. Auto lending is a relatively small business for Capital One, though. It's one of several reported within Capital One's consumer banking division, which makes up roughly 20% of the company's overall revenues. Executive color Finally, it's more than just the raw numbers on press releases and financial supplements. Management's commentary during the conference call can also provide more insight into consumer behavior. CEO Fairbank, for example, talked about Capital One's revolve rates last quarter. That's the percentage of a customer's credit balance not paid off in full each month. The executive reassured investors when he said this rate has "stabilized over the past year" and remains "below pre-pandemic levels for our major products and segments." While higher revolve rates can benefit Capital One because it means more interest-based revenues, it can also mean customers are relying more on credit due to economic pressures like stagnant wages or inflation. Fairbank, a widely respect financial industry veteran, may also just share his thoughts on consumer health outright. He said the U.S. consumer "remains a source of strength in the economy" during the company's last earnings call. Although he acknowledges that "some pockets [of them] are feeling the pressure," on the whole he described U.S. customers as being in "good shape." In June, the executive struck a positive tone again. "Despite all the noise out there and the tariff news and everything, even when we look at the very latest daily data on things like spending data or anything related to consumer behavior, we just don't see an effect," Fairbank said during Morgan Stanley's U.S. financials conference on June 10. He added, "It's as if our consumers aren't really reading the same newspaper that we are. So, I'm cautiously optimistic about what I see." Let's just hope this trend continues into the rest of 2025. (Jim Cramer's Charitable Trust is long COF. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Forbes
2 minutes ago
- Forbes
Buy Google Stock Ahead Of Its Upcoming Earnings?
Photo via Smith Collection/Gado/Getty Images Alphabet (NASDAQ:GOOG) is set to publish its earnings on Wednesday, July 23, 2025. In the last five years, Google's stock has demonstrated a favorable one-day return in 55% of occurrences following its earnings announcements. The median positive return seen on these days was 4.8%, while the highest one-day positive return reached 10.0%. Although the actual results compared to consensus and market expectations will significantly affect the stock's movement, comprehending these historical trends can be advantageous for event-driven traders. Event-driven traders generally consider two primary strategies: Current consensus predictions for Google's forthcoming earnings report anticipate $2.18 per share on revenues of $93.73 billion. This suggests growth in comparison to the same quarter last year, which reported earnings of $1.89 per share with revenues of $84.74 billion. From a fundamental perspective, Google currently boasts a significant market capitalization of $2.3 trillion. Over the past twelve months, the company produced revenues of $360 billion, generated $118 billion in operating profits, and declared a net income of $111 billion. That being said, if you are looking for potential gains with less volatility than individual stocks, the Trefis High Quality portfolio offers an alternative — having surpassed the S&P 500 and delivered returns exceeding 91% since its inception. Additionally, check out –RGTI Stock: Path To 10x Growth See earnings reaction history of all stocks Alphabet's Historical Odds Of Positive Post-Earnings Return Here are some insights regarding one-day (1D) post-earnings returns: Further data for observed 5-Day (5D), and 21-Day (21D) returns following earnings are compiled along with the statistics in the table below. 5-Day (5D), and 21-Day (21D) returns following earnings Correlation Between 1D, 5D, and 21D Historical Returns A relatively less risky strategy (though not advantageous if the correlation is weak) is to comprehend the correlation between short-term and medium-term returns following earnings, identify a pair that exhibits the highest correlation, and carry out the appropriate trade. For instance, if 1D and 5D display the highest correlation, a trader could position themselves 'long' for the next 5 days if the 1D post-earnings return is positive. Here is some correlation data based on 5-year and 3-year (more recent) history. Note that the correlation 1D_5D signifies the correlation between 1D post-earnings returns and subsequent 5D returns. Correlation Between 1D, 5D, and 21D Historical Returns Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (a combination of all 3, the S&P 500, S&P mid-cap, and Russell 2000), delivering strong returns for investors. Separately, if you are seeking potential upside with a smoother experience than an individual stock like Alphabet, consider the High Quality portfolio, which has surpassed the S&P and achieved >91% returns since its inception. Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates
