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Shift4 Payments (FOUR) Gains As Market Dips: What You Should Know
Shift4 Payments (FOUR - Free Report) closed the most recent trading day at $46.18, moving +0.46% from the previous trading session. This change outpaced the S&P 500's 0.41% loss on the day. Meanwhile, the Dow lost 0.24%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Heading into today, shares of the company had gained 4.5% over the past month, lagging the Business Services sector's gain of 8.46% and the S&P 500's gain of 8.12% in that time.
Shift4 Payments will be looking to display strength as it nears its next earnings release, which is expected to be November 7, 2022. On that day, Shift4 Payments is projected to report earnings of $0.42 per share, which would represent year-over-year growth of 61.54%. Meanwhile, our latest consensus estimate is calling for revenue of $189.35 million, up 27.68% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.34 per share and revenue of $710.87 million. These totals would mark changes of +38.14% and +34.38%, respectively, from last year.
Any recent changes to analyst estimates for Shift4 Payments 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. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 8.23% higher. Shift4 Payments is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Shift4 Payments currently has a Forward P/E ratio of 34.31. Its industry sports an average Forward P/E of 16.39, 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 industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.