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Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know
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Shopify (SHOP - Free Report) closed at $643.97 in the latest trading session, marking a -1.92% move from the prior day. This change lagged the S&P 500's 0.43% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the cloud-based commerce company had gained 11.73% over the past month, outpacing the Computer and Technology sector's gain of 3.3% and the S&P 500's gain of 3.69% in that time.
Wall Street will be looking for positivity from Shopify as it approaches its next earnings report date. The company is expected to report EPS of $0.78, down 61.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.26 billion, up 26.97% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $3.27 per share and revenue of $6.05 billion. These results would represent year-over-year changes of -48.99% and +31.2%, respectively.
Any recent changes to analyst estimates for Shopify should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Shopify is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 201.04 right now. This valuation marks a premium compared to its industry's average Forward P/E of 21.5.
Also, we should mention that SHOP has a PEG ratio of 6.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SHOP's industry had an average PEG ratio of 2.6 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know
Shopify (SHOP - Free Report) closed at $643.97 in the latest trading session, marking a -1.92% move from the prior day. This change lagged the S&P 500's 0.43% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the cloud-based commerce company had gained 11.73% over the past month, outpacing the Computer and Technology sector's gain of 3.3% and the S&P 500's gain of 3.69% in that time.
Wall Street will be looking for positivity from Shopify as it approaches its next earnings report date. The company is expected to report EPS of $0.78, down 61.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.26 billion, up 26.97% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $3.27 per share and revenue of $6.05 billion. These results would represent year-over-year changes of -48.99% and +31.2%, respectively.
Any recent changes to analyst estimates for Shopify should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Shopify is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 201.04 right now. This valuation marks a premium compared to its industry's average Forward P/E of 21.5.
Also, we should mention that SHOP has a PEG ratio of 6.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SHOP's industry had an average PEG ratio of 2.6 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.