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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 $63.76, moving -1.33% from the previous trading session. This change lagged the S&P 500's 0.45% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 1.99%.
Prior to today's trading, shares of the cloud-based commerce company had gained 12.99% over the past month. This has outpaced the Computer and Technology sector's gain of 3.21% and the S&P 500's gain of 4.25% in that time.
Investors will be hoping for strength from Shopify as it approaches its next earnings release. On that day, Shopify is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 300%. Meanwhile, our latest consensus estimate is calling for revenue of $1.62 billion, up 25.11% from the prior-year quarter.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.32 per share and revenue of $6.74 billion. These results would represent year-over-year changes of +700% and +20.38%, respectively.
Investors should also note any 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. Within the past 30 days, our consensus EPS projection has moved 13.55% higher. Shopify is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Shopify is holding a Forward P/E ratio of 203.69. For comparison, its industry has an average Forward P/E of 27, which means Shopify is trading at a premium to the group.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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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 $63.76, moving -1.33% from the previous trading session. This change lagged the S&P 500's 0.45% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 1.99%.
Prior to today's trading, shares of the cloud-based commerce company had gained 12.99% over the past month. This has outpaced the Computer and Technology sector's gain of 3.21% and the S&P 500's gain of 4.25% in that time.
Investors will be hoping for strength from Shopify as it approaches its next earnings release. On that day, Shopify is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 300%. Meanwhile, our latest consensus estimate is calling for revenue of $1.62 billion, up 25.11% from the prior-year quarter.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.32 per share and revenue of $6.74 billion. These results would represent year-over-year changes of +700% and +20.38%, respectively.
Investors should also note any 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. Within the past 30 days, our consensus EPS projection has moved 13.55% higher. Shopify is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Shopify is holding a Forward P/E ratio of 203.69. For comparison, its industry has an average Forward P/E of 27, which means Shopify is trading at a premium to the group.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.