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

Block, Inc. XYZ shares have surged 24.7% in a month, outperforming its industry’s rise of 5.7%. Notably, XYZ shares gained 7.2% during the intra-day trading session yesterday, after Block had made it to the coveted S&P 500 list.

On Friday, July 18, S&P Dow Jones Indices announced that it will add Block to the S&P 500 Index, replacing Hess, which is set to be acquired by Chevron. The change will take effect on July 23, 2025.

“It’s a milestone that reflects the strength of our business and the work of thousands of people building tools to increase access to the economy, across our brands including Square, Cash App, Afterpay, TIDAL, Proto, and Bitkey.” Block said in a statement.

Inclusion in the S&P 500 is significant, as it often leads to increased demand from index funds and passive investors who aim to replicate the index's performance. This heightened demand can boost a company's stock price and liquidity. For Block, the inclusion will validate its growth trajectory and enhance its visibility and credibility in the market.

Block’s market capitalization of $44.79 billion is way above the S&P 500’s $20.5 billion eligibility threshold to get added to the S&P 500 list. The committee also seems to have been impressed with several other factors, such as governance, liquidity and market representation before adding Block into the index.

Block’s addition to S&P marks the second alteration to the benchmark index since last week. Earlier, a leading global advertising technology company, The Trade Desk TTD was added to the S&P 500. TDD replaced Ansys, which on Thursday July 17, was formally acquired by chip design software provider Synopsys.

Block is building a powerful fintech ecosystem through its dual growth engines, Square and Cash App. These platforms offer comprehensive solutions that span payments, commerce, banking, and lending, positioning Block as a one-stop provider for both consumers and businesses. The latest innovations like the Cash App’s launch of Tap to Pay on iPhone for Cash App Business sellers and Square’s launch of Square Handheld in the UK, showcase its commitment to user-centric design and revenue diversification.

Block’s Shares Trading Cheap

In terms of forward 12-month P/E, XYZ stock is trading at 26.51X compared with the Zacks Internet Software Market industry’s 40.95X. The stock is cheaper than its competitors, including Reddit, Inc. RDDT.

Shares of RDDT are currently trading at P/E of 83.84X.

Block’s Estimate Analysis

Moreover, the Zacks Consensus Estimate for Block’s 2025 and 2026 earnings implies growth of 3.4% and 9.4%, respectively, on a year-over-year basis. In the past week, the Zacks Consensus Estimate for its 2025 earnings per share increased 2 cents to $2.40, while for 2026, it has moved a cent downward to $3.38.

XYZ currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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