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Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know
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Shopify (SHOP - Free Report) closed the most recent trading day at $47.68, moving -0.54% from the previous trading session. This change lagged the S&P 500's 0.37% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Heading into today, shares of the cloud-based commerce company had gained 10.46% over the past month, lagging the Computer and Technology sector's gain of 10.71% and outpacing the S&P 500's gain of 3.71% 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 -$0.01, down 150% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.43 billion, up 18.71% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.07 per share and revenue of $6.67 billion. These results would represent year-over-year changes of +75% and +19.15%, respectively.
Investors might also notice recent changes to analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.63% higher. Shopify is currently a Zacks Rank #3 (Hold).
Digging into valuation, Shopify currently has a Forward P/E ratio of 668.93. This represents a premium compared to its industry's average Forward P/E of 26.33.
Meanwhile, SHOP's PEG ratio is currently 50.3. 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 1.43 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 64, which puts it in the top 26% 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.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.
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Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know
Shopify (SHOP - Free Report) closed the most recent trading day at $47.68, moving -0.54% from the previous trading session. This change lagged the S&P 500's 0.37% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Heading into today, shares of the cloud-based commerce company had gained 10.46% over the past month, lagging the Computer and Technology sector's gain of 10.71% and outpacing the S&P 500's gain of 3.71% 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 -$0.01, down 150% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.43 billion, up 18.71% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.07 per share and revenue of $6.67 billion. These results would represent year-over-year changes of +75% and +19.15%, respectively.
Investors might also notice recent changes to analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.63% higher. Shopify is currently a Zacks Rank #3 (Hold).
Digging into valuation, Shopify currently has a Forward P/E ratio of 668.93. This represents a premium compared to its industry's average Forward P/E of 26.33.
Meanwhile, SHOP's PEG ratio is currently 50.3. 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 1.43 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 64, which puts it in the top 26% 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.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.