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Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know
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Shopify (SHOP - Free Report) closed the most recent trading day at $1,163, moving -0.73% from the previous trading session. This change lagged the S&P 500's 0.13% gain on the day. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.15%.
Prior to today's trading, shares of the cloud-based commerce company had gained 9.59% over the past month. This has outpaced the Computer and Technology sector's gain of 4.54% and the S&P 500's gain of 2.59% in that time.
Investors will be hoping for strength from SHOP as it approaches its next earnings release. In that report, analysts expect SHOP to post earnings of $1.24 per share. This would mark year-over-year growth of 188.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $899.16 million, up 78% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $3.71 per share and revenue of $2.85 billion. These results would represent year-over-year changes of +1136.67% and +80.44%, respectively.
Any recent changes to analyst estimates for SHOP should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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.
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. The Zacks Consensus EPS estimate has moved 6.24% higher within the past month. SHOP is currently a Zacks Rank #1 (Strong Buy).
Investors should also note SHOP's current valuation metrics, including its Forward P/E ratio of 316. This valuation marks a premium compared to its industry's average Forward P/E of 29.48.
Meanwhile, SHOP's PEG ratio is currently 9.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 2 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 125, putting it in the top 50% 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.
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 the most recent trading day at $1,163, moving -0.73% from the previous trading session. This change lagged the S&P 500's 0.13% gain on the day. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.15%.
Prior to today's trading, shares of the cloud-based commerce company had gained 9.59% over the past month. This has outpaced the Computer and Technology sector's gain of 4.54% and the S&P 500's gain of 2.59% in that time.
Investors will be hoping for strength from SHOP as it approaches its next earnings release. In that report, analysts expect SHOP to post earnings of $1.24 per share. This would mark year-over-year growth of 188.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $899.16 million, up 78% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $3.71 per share and revenue of $2.85 billion. These results would represent year-over-year changes of +1136.67% and +80.44%, respectively.
Any recent changes to analyst estimates for SHOP should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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.
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. The Zacks Consensus EPS estimate has moved 6.24% higher within the past month. SHOP is currently a Zacks Rank #1 (Strong Buy).
Investors should also note SHOP's current valuation metrics, including its Forward P/E ratio of 316. This valuation marks a premium compared to its industry's average Forward P/E of 29.48.
Meanwhile, SHOP's PEG ratio is currently 9.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 2 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 125, putting it in the top 50% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.