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Shopify (SHOP) Gains As Market Dips: What You Should Know
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Shopify (SHOP - Free Report) closed at $1,120.95 in the latest trading session, marking a +0.34% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, added 0.76%.
Heading into today, shares of the cloud-based commerce company had lost 19.32% over the past month, lagging the Computer and Technology sector's loss of 6.54% and the S&P 500's gain of 0.17% 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 $0.75 per share. This would mark year-over-year growth of 294.74%. Our most recent consensus estimate is calling for quarterly revenue of $833.25 million, up 77.29% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.88 per share and revenue of $3.99 billion. These totals would mark changes of -2.51% and +36.29%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for SHOP. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate has moved 18.51% lower. SHOP is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SHOP is currently trading at a Forward P/E ratio of 287.57. This valuation marks a premium compared to its industry's average Forward P/E of 29.39.
Investors should also note that SHOP has a PEG ratio of 8.85 right now. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.42 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% 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.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.
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Shopify (SHOP) Gains As Market Dips: What You Should Know
Shopify (SHOP - Free Report) closed at $1,120.95 in the latest trading session, marking a +0.34% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.06%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, added 0.76%.
Heading into today, shares of the cloud-based commerce company had lost 19.32% over the past month, lagging the Computer and Technology sector's loss of 6.54% and the S&P 500's gain of 0.17% 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 $0.75 per share. This would mark year-over-year growth of 294.74%. Our most recent consensus estimate is calling for quarterly revenue of $833.25 million, up 77.29% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.88 per share and revenue of $3.99 billion. These totals would mark changes of -2.51% and +36.29%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for SHOP. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate has moved 18.51% lower. SHOP is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SHOP is currently trading at a Forward P/E ratio of 287.57. This valuation marks a premium compared to its industry's average Forward P/E of 29.39.
Investors should also note that SHOP has a PEG ratio of 8.85 right now. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.42 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% 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.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.