In spite of a recent rough patch, Square is a good stock to buy.

Overall, Square’s stock has performed well in the three years since it first went public, rising from $12 per share to an all-time high of $101.15. But last week, the company’s shares fell in spite of a mostly positive first-quarter earnings report.

Square posted earnings of 11 cents per share and the company’s revenue rose 43%, beating investor expectations. But the gross payment volume was $22.6 billion, which was below investor expectations of $22.8 billion. And the company forecasted second-quarter earnings between 14 and 16 cents per share, which was also lower than expected.

The company’s stock fell 30% below its 52-week high. So the question is whether this presents a good buying opportunity for investors or is a sign that rough times lie ahead for Square.

Things to like about Square

In spite of the recent drop in its stock, the outlook for Square is still mostly positive. The company provides a credit card processing service and has continued to steadily expand its offerings over the years.

Square Capital is the company’s business lending service and the company also offers Cash Apps, a peer-to-peer payment platform. Volume on Cash Apps alone grew 150% year-over-year with 15 million monthly active users. These services, among others, help Square stand out from the competition and continue to grow.

Offering such a wide variety of services is a huge benefit to Square. Once a customer signs on with the company, Square can immediately upsell them with different services. And the more services that customer uses, the harder it becomes for them to switch to one of Square’s competitors.

Conclusion

Overall, Square is poised well for future growth. Square earned just under $85 million in 2018 and there’s room for the company to grow well past that in the coming years. Square is a good buy and investors can take advantage of this recent stock drop to buy in at a discounted price.