Block Inc (EXZ) Surges 7% on Strong Outlook

XYZ +0.14%

We recently published 10 Stocks Beating Wall Street at its Own Game. Block Inc. (NYSE:EXZ) is one of the best-performing stocks on Wednesday.

Block snapped a six-day losing streak on Wednesday, jumping 7.56 percent to close at $62 apiece as investor sentiment was bolstered by its strong financial growth outlook over the next three years.

By 2028, Block Inc. (NYSE:EXZ) expects gross profit to grow by mid-teens annually and reach $15.8 billion; adjusted operating income to increase 30 percent per annum to $4.6 billion; and adjusted earnings per share of low 30 percent annually to $5.50.

For next year alone, Block Inc. (NYSE:EXZ) targets to deliver 17 percent gross profit growth year-on-year to $11.98 billion, while adjusted operating income and adjusted earnings per share are projected to jump by more than 30 percent to $2.7 billion and $3.20, respectively.

Additionally, the company expects its non-GAAP cash flow to represent 20 percent of gross profit or $2.40 billion.

Guidance aside, the company also announced that it would raise its share repurchase program to $5 billion. As of the third quarter, it only has $1.1 billion remaining to spend.

“We’re moving faster with greater scale and efficiency, driving product velocity across Square and Cash App to serve more customers and help them participate in the modern economy,” said Block Inc. (NYSE:EXZ) COO and CFO Amrita Ahuja.

“Our guidance reflects the strength of our connected ecosystems and our ability to deliver compounding growth while expanding margins. We’ll continue to invest in innovation across our networks to sustain performance and create long-term value for our customers and shareholders.”

While we acknowledge the potential of EXZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.