We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shopify (SHOP) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
Shopify (SHOP - Free Report) closed the most recent trading day at $1,375.62, moving -1.78% from the previous trading session. This move lagged the S&P 500's daily loss of 0.1%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the cloud-based commerce company had lost 10.62% over the past month. This has lagged the Computer and Technology sector's gain of 3.66% and the S&P 500's gain of 4.4% in that time.
Investors will be hoping for strength from Shopify as it approaches its next earnings release. The company is expected to report EPS of $1.42, down 10.13% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.35 billion, up 38.14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.39 per share and revenue of $4.59 billion. These totals would mark changes of +60.55% and +56.66%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Shopify. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. Shopify is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Shopify is holding a Forward P/E ratio of 219.03. Its industry sports an average Forward P/E of 26.44, so we one might conclude that Shopify is trading at a premium comparatively.
It is also worth noting that SHOP currently has a PEG ratio of 6.8. 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 group has a Zacks Industry Rank of 172, putting it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Shopify (SHOP) Dips More Than Broader Markets: What You Should Know
Shopify (SHOP - Free Report) closed the most recent trading day at $1,375.62, moving -1.78% from the previous trading session. This move lagged the S&P 500's daily loss of 0.1%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the cloud-based commerce company had lost 10.62% over the past month. This has lagged the Computer and Technology sector's gain of 3.66% and the S&P 500's gain of 4.4% in that time.
Investors will be hoping for strength from Shopify as it approaches its next earnings release. The company is expected to report EPS of $1.42, down 10.13% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.35 billion, up 38.14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.39 per share and revenue of $4.59 billion. These totals would mark changes of +60.55% and +56.66%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Shopify. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. Shopify is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Shopify is holding a Forward P/E ratio of 219.03. Its industry sports an average Forward P/E of 26.44, so we one might conclude that Shopify is trading at a premium comparatively.
It is also worth noting that SHOP currently has a PEG ratio of 6.8. 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 group has a Zacks Industry Rank of 172, putting it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.