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) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
Shopify (SHOP - Free Report) closed at $41.78 in the latest trading session, marking a +0.77% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.28%, and the Nasdaq, a tech-heavy index, added 3.16%.
Heading into today, shares of the cloud-based commerce company had lost 14.16% over the past month, lagging the Computer and Technology sector's loss of 3.13% and the S&P 500's loss of 5.39% in that time.
Wall Street will be looking for positivity from Shopify as it approaches its next earnings report date. The company is expected to report EPS of $0, down 100% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.43 billion, up 18.71% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.02 per share and revenue of $6.67 billion, which would represent changes of -50% and +19.06%, respectively, from the prior year.
Any recent changes to analyst estimates for Shopify should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Within the past 30 days, our consensus EPS projection has moved 1.36% higher. Shopify currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 1727.5. This valuation marks a premium compared to its industry's average Forward P/E of 24.98.
Also, we should mention that SHOP has a PEG ratio of 129.89. 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 1.26 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Shopify (SHOP) Gains As Market Dips: What You Should Know
Shopify (SHOP - Free Report) closed at $41.78 in the latest trading session, marking a +0.77% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.28%, and the Nasdaq, a tech-heavy index, added 3.16%.
Heading into today, shares of the cloud-based commerce company had lost 14.16% over the past month, lagging the Computer and Technology sector's loss of 3.13% and the S&P 500's loss of 5.39% in that time.
Wall Street will be looking for positivity from Shopify as it approaches its next earnings report date. The company is expected to report EPS of $0, down 100% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.43 billion, up 18.71% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.02 per share and revenue of $6.67 billion, which would represent changes of -50% and +19.06%, respectively, from the prior year.
Any recent changes to analyst estimates for Shopify should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Within the past 30 days, our consensus EPS projection has moved 1.36% higher. Shopify currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 1727.5. This valuation marks a premium compared to its industry's average Forward P/E of 24.98.
Also, we should mention that SHOP has a PEG ratio of 129.89. 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 1.26 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.