Oakland, California-based Block, Inc. (XYZ) operates as a fintech company, providing payment solutions and blockchain-based products and services to businesses and individuals. With a market cap of $45.7 billion, Block operates through the Square and Cash App segments.

Companies worth $10 billion or more are generally described as “large-cap stocks.” Block fits this bill perfectly. Given the company’s extensive operations and dominance in the fintech industry, its valuation above this mark is unsurprising.

Despite its strengths, XYZ stock has plunged 23.6% from its three-year high of $99.26 touched on Dec. 5, 2024. However, the stock has surged 16.7% over the past three months, notably outperforming the Dow Jones Industrial Average’s ($DOWI) 6.4% uptick during the same time frame.

Meanwhile, on a YTD basis, XYZ stock has declined 10.8%, underperforming the Dow’s 7% gains. But over the past 52 weeks, XYZ has soared 23.8%, significantly outperforming the Dow’s 12.8% uptick during the same time frame.

To confirm the recent uptrend, Block has traded consistently above its 50-day moving average since mid-May and above its 200-day moving average since July.

Block’s stock prices declined 4.5% in the trading session following the release of its mixed Q2 results on Aug. 7. The company’s transaction-based revenues increased 6.1% year-over-year to $1.8 billion, and subscription and service revenues soared by 14.8% to $2.1 billion. Meanwhile, its Bitcoin revenues plummeted 17.9% year-over-year to $2.1 billion, severely impacting the company’s overall topline. Due to this, Block’s total revenues came in at $6.1 billion, down 1.6% from the year-ago quarter and missing the Street expectations by 4.2%, making investors jittery.

On a more positive note, Block’s adjusted EBITDA increased 17.4% year-over-year to $891.4 million. Its adjusted EPS came in at $0.62, up a staggering 31.9% from the year-ago quarter and significantly above the consensus estimates.

Moreover, Block has also significantly outperformed its peer, PayPal Holdings, Inc.’s (PYPL) 19.9% decline on a YTD basis and a marginal 71 bps dip over the past 52 weeks.

Among the 42 analysts covering the XYZ stock, the consensus rating is a “Moderate Buy.” Its mean price target of $83.35 suggests a 9.9% upside potential from current price levels.