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Shift4 Payments (FOUR) Dips More Than Broader Markets: What You Should Know

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Shift4 Payments (FOUR - Free Report) closed at $47.16 in the latest trading session, marking a -1.5% move from the prior day. This change lagged the S&P 500's 0.67% loss on the day. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq lost 0.22%.

Coming into today, shares of the company had gained 0.29% in the past month. In that same time, the Business Services sector lost 7.68%, while the S&P 500 lost 3.76%.

Investors will be hoping for strength from Shift4 Payments as it approaches its next earnings release, which is expected to be November 7, 2022. The company is expected to report EPS of $0.40, up 53.85% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $188.27 million, up 26.95% from the prior-year quarter.

FOUR's full-year Zacks Consensus Estimates are calling for earnings of $1.30 per share and revenue of $707.87 million. These results would represent year-over-year changes of +34.02% and +33.81%, respectively.

Any recent changes to analyst estimates for Shift4 Payments should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 1.73% higher. Shift4 Payments is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Shift4 Payments is currently trading at a Forward P/E ratio of 36.76. This represents a premium compared to its industry's average Forward P/E of 15.97.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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