Ever since reporting its latest financial results, Block (SQ 2.32%) shares have been on an absolute tear. As of Dec. 15, they are up an incredible 69% from Nov. 2, the date of the announcement.

This is what shareholders want to see from a stock that is still well below its peak price. Perhaps next year will bring a continuation of this robust performance.

Can this leading fintech enterprise see its shares rise to $100 by the end of 2024, which translates to about a 30% gain? I don't think it's out of the question at all.

Here's what investors need to know.

Dorsey's refreshed focus

This business is growing at a healthy clip. Overall gross profit increased 21% to $1.9 billion in the third quarter. And both Square and Cash App posted double-digit gains.

But investors were probably most excited about the company's upgraded projection for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and adjusted operating income for the current year. Seeing a perennial money loser start turning out profits is encouraging.

In the Q3 2023 shareholder letter, co-founder and Chief Executive Officer Jack Dorsey talked about how one of his main focal points is to figure out ways to better integrate the two ecosystems. Cash App Pay and the integration of buy now, pay later specialist Afterpay are two examples, both of which can increase engagement and lead to more revenue potential for Block.

Waiting on a stronger economy

You wouldn't really think this is the case, especially by looking at the cooling inflation data or low unemployment rate, but the U.S. economy isn't necessarily in the best position right now. Consumer confidence is still well below pre-pandemic levels, credit card debt is at an all-time high, and high interest rates are making homes and cars, the two biggest purchases people make, less affordable.

What's more alarming is the Treasury yield curve, which has been inverted for about 18 months now -- meaning short-term yields are higher than long-term yields. This typically precedes a recession. All of this is to say that things might get worse before we see a recovery.

I'm sure every business out there wants to see a stronger economy sooner rather than later. This could happen if the Fed ends up cutting rates multiple times in 2024 as some forecasters anticipate. And Block would be in a good spot to gain.

When consumers are willing to spend more, it means greater capital inflows into Cash App and higher transaction volumes. This translates to more revenue potential.

On the Square side, it's a similar story. If merchants see a pickup in business, then Square benefits from higher service revenue and more payment volume. Plus, it could be easier to bring on more customers.

Should growth accelerate in 2024, there's no doubt that Block shares are in a wonderful position to see a boost. Strong fundamental performance can be a boon for the stock price.

The valuation is a key factor

In the short term, though, which is how I view the next 12 months, changes in investor sentiment have a greater impact on the stock price than fundamentals do. But because Block shares are so beaten down, now about 74% off their peak, this could add upside.

The current price-to-sales (P/S) multiple of under 2.2 is significantly lower than the historical average of 6. This indicates that investors have written off the stock. All else equal, paying a lower valuation is better. And should Block's P/S ratio start to approach its past average, it'll be exciting times for shareholders.

While it's almost impossible to predict what a particular stock will do in the next 12 months, I wouldn't be surprised at all if, a year from now, Block shares have eclipsed the $100 price target.