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Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Shopify (SHOP - Free Report) closed at $1,069.21, marking a -0.39% move from the previous day. This change lagged the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.5%.
SHOP will be looking to display strength as it nears its next earnings release. In that report, analysts expect SHOP to post earnings of $0.45 per share. This would mark year-over-year growth of 246.15%. Our most recent consensus estimate is calling for quarterly revenue of $634.51 million, up 62.47% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $2.35 per share and revenue of $2.54 billion. These results would represent year-over-year changes of +683.33% and +61.2%, respectively.
Investors should also note any 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 19.9% higher. SHOP is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that SHOP has a Forward P/E ratio of 455.96 right now. This valuation marks a premium compared to its industry's average Forward P/E of 38.51.
Meanwhile, SHOP's PEG ratio is currently 14.03. 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 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 172, which puts it in the bottom 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Shopify (SHOP - Free Report) closed at $1,069.21, marking a -0.39% move from the previous day. This change lagged the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.5%.
SHOP will be looking to display strength as it nears its next earnings release. In that report, analysts expect SHOP to post earnings of $0.45 per share. This would mark year-over-year growth of 246.15%. Our most recent consensus estimate is calling for quarterly revenue of $634.51 million, up 62.47% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $2.35 per share and revenue of $2.54 billion. These results would represent year-over-year changes of +683.33% and +61.2%, respectively.
Investors should also note any 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 19.9% higher. SHOP is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that SHOP has a Forward P/E ratio of 455.96 right now. This valuation marks a premium compared to its industry's average Forward P/E of 38.51.
Meanwhile, SHOP's PEG ratio is currently 14.03. 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 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 172, which puts it in the bottom 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.