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Shopify (SHOP) Gains But Lags Market: What You Should Know
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Shopify (SHOP - Free Report) closed the most recent trading day at $313.33, moving +0.44% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.77%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 0.75%.
Heading into today, shares of the cloud-based commerce company had gained 13.85% over the past month, outpacing the Computer and Technology sector's gain of 8.17% and the S&P 500's gain of 8.19% in that time.
SHOP will be looking to display strength as it nears its next earnings release. On that day, SHOP is projected to report earnings of $0.04 per share, which would represent year-over-year growth of 100%. Meanwhile, our latest consensus estimate is calling for revenue of $350.06 million, up 42.9% from the prior-year quarter.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.57 per share and revenue of $1.51 billion. These results would represent year-over-year changes of +50% and +40.24%, respectively.
Any recent changes to analyst estimates for SHOP should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. SHOP currently has a Zacks Rank of #3 (Hold).
Investors should also note SHOP's current valuation metrics, including its Forward P/E ratio of 546.47. For comparison, its industry has an average Forward P/E of 29.66, which means SHOP is trading at a premium to the group.
Investors should also note that SHOP has a PEG ratio of 23.09 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 2.86 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Shopify (SHOP) Gains But Lags Market: What You Should Know
Shopify (SHOP - Free Report) closed the most recent trading day at $313.33, moving +0.44% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.77%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 0.75%.
Heading into today, shares of the cloud-based commerce company had gained 13.85% over the past month, outpacing the Computer and Technology sector's gain of 8.17% and the S&P 500's gain of 8.19% in that time.
SHOP will be looking to display strength as it nears its next earnings release. On that day, SHOP is projected to report earnings of $0.04 per share, which would represent year-over-year growth of 100%. Meanwhile, our latest consensus estimate is calling for revenue of $350.06 million, up 42.9% from the prior-year quarter.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.57 per share and revenue of $1.51 billion. These results would represent year-over-year changes of +50% and +40.24%, respectively.
Any recent changes to analyst estimates for SHOP should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. SHOP currently has a Zacks Rank of #3 (Hold).
Investors should also note SHOP's current valuation metrics, including its Forward P/E ratio of 546.47. For comparison, its industry has an average Forward P/E of 29.66, which means SHOP is trading at a premium to the group.
Investors should also note that SHOP has a PEG ratio of 23.09 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 2.86 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.