#2 - Square (NYSE:SQ)
When JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon opined about the emerging threat that financial technology (fintech) companies presented, he may well have had Square (NYSE:SQ) in mind. Square has become the payment processor of choice for a host of businesses who use Square as their payment processor.
And Square is taking direct aim at the big banks by adding automatic clearing house (ACH) transfers to its invoices. Instead of the typical 3% fee that consumers and businesses are charged for a debit or credit card transaction, Square will only charge 1% for an ACH transaction. For restaurants and retailers that operate on ultra-tight margins, this is a very big deal.
It’s also a reason why SQ stock should have much higher to climb. In the last 12 months, SQ stock has climbed 303%. However, it would be up even higher but it was caught up in the tech selloff. The stock made one more run at that $275 number but has been beaten back. But a strong earnings report may be the catalyst for the stock to move to new heights.
About Block
Square, Inc provides payment and point-of-sale solutions in the United States and internationally. The company's commerce ecosystem includes point-of-sale software and hardware that enables sellers to turn mobile and computing devices into payment and point-of-sale solutions. It offers hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts EMV® chip cards and Near Field Communication payments; Chip card reader, which accepts EMV® chip cards and enables swiped transactions of magnetic stripe cards; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; and Square Register that combines its hardware, point-of-sale software, and payments technology, as well as managed payments solutions.
Read More - Current Price
- $64.08
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 27 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $87.59 (36.7% Upside)
