In the latest trading session, Shopify (SHOP - Free Report) closed at $934.17, marking a -1.59% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.76%. At the same time, the Dow lost 1.45%, and the tech-heavy Nasdaq lost 1.99%.
Heading into today, shares of the cloud-based commerce company had lost 4.21% over the past month, lagging the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 1.56% in that time.
SHOP will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.46, up 253.85% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $634.65 million, up 62.5% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.34 per share and revenue of $2.55 billion, which would represent changes of +680% and +61.51%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for SHOP. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection has moved 185.99% higher. SHOP is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note SHOP's current valuation metrics, including its Forward P/E ratio of 405.51. This valuation marks a premium compared to its industry's average Forward P/E of 37.74.
Investors should also note that SHOP has a PEG ratio of 12.48 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. SHOP's industry had an average PEG ratio of 2.14 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 125, which puts it in the top 50% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.