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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 $1,065.21, moving +0.33% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.66%. Elsewhere, the Dow gained 1.39%, while the tech-heavy Nasdaq added 1.24%.
Prior to today's trading, shares of the cloud-based commerce company had lost 14.73% over the past month. This has lagged the Computer and Technology sector's loss of 1.7% and the S&P 500's gain of 1.91% 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 $0.75, up 294.74% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $833.25 million, up 77.29% from the prior-year quarter.
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.
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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. SHOP is currently a Zacks Rank #3 (Hold).
Digging into valuation, SHOP currently has a Forward P/E ratio of 273.3. This represents a premium compared to its industry's average Forward P/E of 29.5.
It is also worth noting that SHOP currently has a PEG ratio of 8.41. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.96 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 147, which puts it in the bottom 43% 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.
To follow SHOP in the coming trading sessions, be sure to utilize 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 $1,065.21, moving +0.33% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.66%. Elsewhere, the Dow gained 1.39%, while the tech-heavy Nasdaq added 1.24%.
Prior to today's trading, shares of the cloud-based commerce company had lost 14.73% over the past month. This has lagged the Computer and Technology sector's loss of 1.7% and the S&P 500's gain of 1.91% 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 $0.75, up 294.74% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $833.25 million, up 77.29% from the prior-year quarter.
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.
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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. SHOP is currently a Zacks Rank #3 (Hold).
Digging into valuation, SHOP currently has a Forward P/E ratio of 273.3. This represents a premium compared to its industry's average Forward P/E of 29.5.
It is also worth noting that SHOP currently has a PEG ratio of 8.41. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.96 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 147, which puts it in the bottom 43% 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.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.