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Shopify (SHOP) Outpaces Stock Market Gains: What You Should Know
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Shopify (SHOP - Free Report) closed the most recent trading day at $1,485.74, moving +1.41% from the previous trading session. This change outpaced the S&P 500's 0.74% gain on the day.
Heading into today, shares of the cloud-based commerce company had gained 2.13% over the past month, outpacing the Computer and Technology sector's loss of 0.81% and the S&P 500's gain of 1.34% in that time.
Investors will be hoping for strength from SHOP as it approaches its next earnings release, which is expected to be October 28, 2021. The company is expected to report EPS of $1.28, up 13.27% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.15 billion, up 49.26% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $6.86 per share and revenue of $4.62 billion. These results would represent year-over-year changes of +72.36% and +57.65%, respectively.
Investors should also note any recent changes to analyst estimates for SHOP. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 has moved 0.82% higher. SHOP is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, SHOP is holding a Forward P/E ratio of 213.72. Its industry sports an average Forward P/E of 28.07, so we one might conclude that SHOP is trading at a premium comparatively.
Meanwhile, SHOP's PEG ratio is currently 7.77. 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 4.32 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Shopify (SHOP) Outpaces Stock Market Gains: What You Should Know
Shopify (SHOP - Free Report) closed the most recent trading day at $1,485.74, moving +1.41% from the previous trading session. This change outpaced the S&P 500's 0.74% gain on the day.
Heading into today, shares of the cloud-based commerce company had gained 2.13% over the past month, outpacing the Computer and Technology sector's loss of 0.81% and the S&P 500's gain of 1.34% in that time.
Investors will be hoping for strength from SHOP as it approaches its next earnings release, which is expected to be October 28, 2021. The company is expected to report EPS of $1.28, up 13.27% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.15 billion, up 49.26% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $6.86 per share and revenue of $4.62 billion. These results would represent year-over-year changes of +72.36% and +57.65%, respectively.
Investors should also note any recent changes to analyst estimates for SHOP. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 has moved 0.82% higher. SHOP is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, SHOP is holding a Forward P/E ratio of 213.72. Its industry sports an average Forward P/E of 28.07, so we one might conclude that SHOP is trading at a premium comparatively.
Meanwhile, SHOP's PEG ratio is currently 7.77. 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 4.32 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.