The Block Ink logo is displayed on a mobile phone with the company’s branding seen in the background in this photo illustration in Brussels, Belgium, on November 3, 2025. (Photo Illustration by Jonathan Raa/NurPhoto via Getty Images)
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Block stock (NYSE: XYZ)is currently down 16% this month, primarily due to disappointing Q3 results.
However, investors should put XYZ on their radar. The core reason is its strong historical support level.
XYZ is presently trading within a key support range of $58.90 to $65.10. Over the last decade, the stock has tested this range 12 times, attracting significant buying interest and resulting in an average peak return of 75.5% following each rebound.
XYZ Stock Peak Return
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However, a support zone by itself is insufficient; rebounds are more probable when fundamentals, sentiment, and market conditions align. What does that situation appear to be for XYZ?
Rebound Likely Due to Strategic Execution
Block’s 11/19/2025 Investor Day presented an enticing three-year forecast: mid-teens growth in gross profit and 30% adjusted operating income/EPS growth extending through 2028. This, together with a $5 billion share repurchase plan, prompted a significant stock rally. Q3 EPS surpassed expectations, and analysts, including William Blair and TD Cowen, underscore notable undervaluation with considerable upside targets. The growth catalysts are Cash App’s lending and the recovering momentum of Square, bolstered by wider fintech trends in embedded finance and AI adoption, despite previous revenue shortfalls and competitive challenges.
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How Are XYZ’s Financials Performing Currently?
- Revenue Growth: 0.5% LTM and a 12.6% average over the last three years.
- Cash Generation: Nearly 7.6% free cash flow margin and a 9.6% operating margin LTM.
- Recent Revenue Shocks: The lowest annual revenue growth for XYZ in the last three years was 0.5%.
- Valuation: XYZ stock is trading at a PE multiple of 12.1.
XYZ Stock Financials
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*LTM: Last Twelve Months
For additional information on XYZ fundamentals, read Buy or Sell XYZ Stock.
What If the Support Fails?
XYZ is no stranger to sharp declines. It plummeted nearly 49% during the 2018 correction, 56% amid the Covid pandemic, and a staggering 86% during the inflation shock. Even with robust fundamentals, the stock displays clear susceptibility when markets decline. These are not slight fluctuations — they are significant drawdowns indicating that owning XYZ involves real risk during volatile periods.
However, the risk is not confined to major market downturns. Stocks can decline even when the markets are performing well – consider events like earnings announcements, business updates, or changes in outlook. Read XYZ Dip Buyer Analyses to explore how the stock has bounced back from steep drops in the past.
Still uncertain about XYZ stock? Think about using a portfolio approach.
The Best Investment Strategy Involves Portfolios
Individual stocks can either surge or plummet, but one key aspect remains: staying invested. The right portfolio can assist you in maintaining your investment, capturing the upside, and reducing the risks associated with any single stock.
The Trefis High Quality (HQ) Portfolio, which comprises 30 stocks, has a history of consistently outperforming its benchmark, including all three indices – the S&P 500, S&P mid-cap, and Russell 2000. What accounts for this? In aggregate, the HQ Portfolio stocks yield superior returns with reduced risk compared to the benchmark index; a smoother investment experience, as shown in HQ Portfolio performance metrics.