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Shopify (SHOP) Gains But Lags Market: What You Should Know
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In the latest trading session, Shopify (SHOP - Free Report) closed at $68.68, marking a +0.34% move from the previous day. This change lagged the S&P 500's 0.39% gain on the day.
Heading into today, shares of the cloud-based commerce company had gained 5.78% over the past month, outpacing the Computer and Technology sector's gain of 2.41% and the S&P 500's gain of 3.16% in that time.
Wall Street will be looking for positivity from Shopify as it approaches its next earnings report date. This is expected to be August 2, 2023. In that report, analysts expect Shopify to post earnings of $0.06 per share. This would mark year-over-year growth of 300%. Meanwhile, our latest consensus estimate is calling for revenue of $1.62 billion, up 25.09% 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 might also notice recent changes to analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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. Within the past 30 days, our consensus EPS projection has moved 13.35% higher. Shopify currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 216 right now. This valuation marks a premium compared to its industry's average Forward P/E of 31.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Shopify (SHOP) Gains But Lags Market: What You Should Know
In the latest trading session, Shopify (SHOP - Free Report) closed at $68.68, marking a +0.34% move from the previous day. This change lagged the S&P 500's 0.39% gain on the day.
Heading into today, shares of the cloud-based commerce company had gained 5.78% over the past month, outpacing the Computer and Technology sector's gain of 2.41% and the S&P 500's gain of 3.16% in that time.
Wall Street will be looking for positivity from Shopify as it approaches its next earnings report date. This is expected to be August 2, 2023. In that report, analysts expect Shopify to post earnings of $0.06 per share. This would mark year-over-year growth of 300%. Meanwhile, our latest consensus estimate is calling for revenue of $1.62 billion, up 25.09% 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 might also notice recent changes to analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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. Within the past 30 days, our consensus EPS projection has moved 13.35% higher. Shopify currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 216 right now. This valuation marks a premium compared to its industry's average Forward P/E of 31.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.