Market Overview

What's Next For Square's Stock?

What's Next For Square's Stock?

Up more than 35 percent in January and more than 50 percent from its lows, Square Inc (NYSE: SQ) still has room to run, according to Todd Gordon of TradingAnalysis.

Gordon: History Is Friendly To Square

Square peaked just above the $100 per share mark in late-2018 only to start 2019 near the $50 per share level. If past history is any indication, Gordon told CNBC this is a bullish trend. Shares gave back nearly 45 percent of its gains in 2016 before rebounding much higher and the current chart points to a rebound from current levels.

Specifically, Square's stock was boosted by a favorable research report and is now trading above a key resistance level of around $75, which Gordon said corresponds to roughly the 200-day moving average. This would represent a "nice breakout play" and mark a reversal from the past few months when selling momentum brought the stock down but not enough to "push it through the lows."

Tepper: Visa Over Square

Mark Tepper, president and CEO of Strategic Wealth Partners, said the digital payment space is likely to grow 20 percent per year over the next five years but Square isn't the best way to play the space. Taking the opposite side of the trade during the "Trading Nation" segment, he said Visa Inc (NYSE: V) is an "all-weather stock" that is better positioned to navigate a downturn in the economy.

He said Square's stock is overvalued at current levels as opposed to Visa, which is trading at a historical discount to its rival Mastercard Inc (NYSE: MA).

Square traded 4 percent higher to $77.21 at time of publication.

Related Links:

Bullish KeyBanc Says Square's Macro Risks Can Be Overcome

Guggenheim's Positive Outlook For Payments Stocks: 'We Expect Strong Results'

Photo credit: Mybloodtypeiscoffee (Own work), via Wikimedia Commons

Posted-In: CNBC Mark Tepper payments Todd Gordon Trading NationTechnicals Media Trading Ideas Best of Benzinga


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