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Shopify (SHOP) Gains But Lags Market: What You Should Know
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In the latest trading session, Shopify (SHOP - Free Report) closed at $1,318.08, marking a +0.24% move from the previous day. This move lagged the S&P 500's daily gain of 1.05%.
Coming into today, shares of the cloud-based commerce company had lost 15.4% in the past month. In that same time, the Computer and Technology sector lost 9.29%, while the S&P 500 lost 5.07%.
Investors will be hoping for strength from SHOP as it approaches its next earnings release. On that day, SHOP is projected to report earnings of $1.21 per share, which would represent year-over-year growth of 7.08%. Our most recent consensus estimate is calling for quarterly revenue of $1.14 billion, up 48.94% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.72 per share and revenue of $4.61 billion, which would represent changes of +68.84% and +57.51%, respectively, from the prior year.
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 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. 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 remained stagnant. SHOP is currently a Zacks Rank #3 (Hold).
Digging into valuation, SHOP currently has a Forward P/E ratio of 195.54. This valuation marks a premium compared to its industry's average Forward P/E of 26.24.
Also, we should mention that SHOP has a PEG ratio of 7.11. 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. The Internet - Services was holding an average PEG ratio of 3.71 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% 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.
View the Zacks #1 Rank List
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Shopify (SHOP) Gains But Lags Market: What You Should Know
In the latest trading session, Shopify (SHOP - Free Report) closed at $1,318.08, marking a +0.24% move from the previous day. This move lagged the S&P 500's daily gain of 1.05%.
Coming into today, shares of the cloud-based commerce company had lost 15.4% in the past month. In that same time, the Computer and Technology sector lost 9.29%, while the S&P 500 lost 5.07%.
Investors will be hoping for strength from SHOP as it approaches its next earnings release. On that day, SHOP is projected to report earnings of $1.21 per share, which would represent year-over-year growth of 7.08%. Our most recent consensus estimate is calling for quarterly revenue of $1.14 billion, up 48.94% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.72 per share and revenue of $4.61 billion, which would represent changes of +68.84% and +57.51%, respectively, from the prior year.
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 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. 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 remained stagnant. SHOP is currently a Zacks Rank #3 (Hold).
Digging into valuation, SHOP currently has a Forward P/E ratio of 195.54. This valuation marks a premium compared to its industry's average Forward P/E of 26.24.
Also, we should mention that SHOP has a PEG ratio of 7.11. 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. The Internet - Services was holding an average PEG ratio of 3.71 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% 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.