Square (NYSE: SQ) has had as good a year as any in the financial sector. The digital payments company broke out in 2020, with its stock up 253% as we enter the last trading day of the year.
As investors think about their portfolios heading into 2021, they might be kicking themselves if they missed out on that growth. But they also may be wary of jumping in now, given how high and how fast the stock has soared. Have they missed out, or does Square still have further to fly?
The first question cautious investors will have about Square is: Is its run-up related primarily to the circumstances surrounding the pandemic, or is there more there? The answer is yes on both counts.