Block Stock Rises 24.7% in a Month: What This Means for Investors

Core Insights - Block, Inc. (XYZ) shares have increased by 24.7% over the past month, significantly outperforming the industry average of 5.7% [1][9] - The company gained 7.2% in intra-day trading after being added to the S&P 500 Index, effective July 23, 2025 [1][3] - Block's market capitalization stands at $44.79 billion, well above the S&P 500's eligibility threshold of $20.5 billion [4] Company Developments - Block's inclusion in the S&P 500 is expected to drive increased demand from index funds and passive investors, enhancing stock price and liquidity [3] - The company emphasizes its strong business foundation and the efforts of its workforce in building tools for economic access across its brands, including Square and Cash App [2] Financial Performance - Block's forward 12-month P/E ratio is 26.51X, which is lower than the Zacks Internet Software Market industry's average of 40.95X, indicating that the stock is trading at a cheaper valuation compared to competitors like Reddit, Inc. [10] - The Zacks Consensus Estimate for Block's earnings indicates growth of 3.4% for 2025 and 9.4% for 2026, with the 2025 earnings per share estimate rising to $2.40 [11] Sales Estimates - The current Zacks Consensus Estimate for Block's sales in the upcoming quarters is as follows: $6.32 billion for Q2 2025, $6.37 billion for Q3 2025, $24.93 billion for the current year, and $27.27 billion for the next year [12] - Year-over-year growth estimates for sales are projected at 2.60% for Q2 2025, 6.66% for Q3 2025, 3.36% for the current year, and 9.36% for the next year [12]