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Surging Earnings Estimates Signal Good News for Shopify (SHOP)

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Shopify Inc. (SHOP - Free Report) is the leading cloud-based, multi-channel commerce platform that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on SHOP’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Shopify could be a solid choice for investors.

Current Quarter Estimates for SHOP

In the past 30 days, four estimates have gone higher for Shopify while one have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 4 cents a share 30 days ago, to 5 cents today, a move of 25%.

Current Year Estimates for SHOP

Meanwhile, Shopify’s current year figures are also looking quite promising, with six estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from 1 cent per share 30 days ago to 5 cents per share today.

Shopify Inc. Price and Consensus

Bottom Line

The stock has also started to move higher lately, adding 7.8% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #3 (Hold) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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