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Shopify (SHOP) Stock Slides as Market Rises: Facts to Know Before You Trade
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Shopify (SHOP - Free Report) closed the most recent trading day at $53.51, moving -0.26% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.63%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 0.39%.
Shares of the cloud-based commerce company have depreciated by 14.86% over the course of the past month, underperforming the Computer and Technology sector's loss of 2.3% and the S&P 500's loss of 3.39%.
Investors will be eagerly watching for the performance of Shopify in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.15, signifying an 850% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.66 billion, indicating a 21.47% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.53 per share and a revenue of $6.91 billion, representing changes of +1225% and +23.39%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Shopify. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 66.67% increase. As of now, Shopify holds a Zacks Rank of #2 (Buy).
From a valuation perspective, Shopify is currently exchanging hands at a Forward P/E ratio of 101.67. This valuation marks a premium compared to its industry's average Forward P/E of 26.73.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
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Shopify (SHOP) Stock Slides as Market Rises: Facts to Know Before You Trade
Shopify (SHOP - Free Report) closed the most recent trading day at $53.51, moving -0.26% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.63%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 0.39%.
Shares of the cloud-based commerce company have depreciated by 14.86% over the course of the past month, underperforming the Computer and Technology sector's loss of 2.3% and the S&P 500's loss of 3.39%.
Investors will be eagerly watching for the performance of Shopify in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.15, signifying an 850% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.66 billion, indicating a 21.47% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.53 per share and a revenue of $6.91 billion, representing changes of +1225% and +23.39%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Shopify. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 66.67% increase. As of now, Shopify holds a Zacks Rank of #2 (Buy).
From a valuation perspective, Shopify is currently exchanging hands at a Forward P/E ratio of 101.67. This valuation marks a premium compared to its industry's average Forward P/E of 26.73.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.