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Shift4 Payments (FOUR) Gains But Lags Market: What You Should Know

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In the latest trading session, Shift4 Payments (FOUR - Free Report) closed at $44.35, marking a +0.43% move from the previous day. This move lagged the S&P 500's daily gain of 1.63%. Elsewhere, the Dow gained 1.07%, while the tech-heavy Nasdaq added 0.3%.

Prior to today's trading, shares of the company had gained 4.92% over the past month. This has outpaced the Business Services sector's loss of 1.05% and the S&P 500's gain of 2.94% in that time.

Wall Street will be looking for positivity from Shift4 Payments as it approaches its next earnings report date. This is expected to be November 7, 2022. On that day, Shift4 Payments is projected to report earnings of $0.40 per share, which would represent year-over-year growth of 53.85%. Meanwhile, our latest consensus estimate is calling for revenue of $188.77 million, up 27.29% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.30 per share and revenue of $707.87 million, which would represent changes of +34.02% and +33.81%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Shift4 Payments. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.73% higher within the past month. Shift4 Payments is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Shift4 Payments has a Forward P/E ratio of 33.9 right now. Its industry sports an average Forward P/E of 15.33, so we one might conclude that Shift4 Payments is trading at a premium comparatively.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% 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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