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Shopify (SHOP) Exceeds Market Returns: Some Facts to Consider
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Shopify (SHOP - Free Report) closed the latest trading day at $74.51, indicating a +1.48% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.18%. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw an increase of 0.1%.
Coming into today, shares of the cloud-based commerce company had gained 2.17% in the past month. In that same time, the Computer and Technology sector gained 1.84%, while the S&P 500 gained 2.75%.
Analysts and investors alike will be keeping a close eye on the performance of Shopify in its upcoming earnings disclosure. In that report, analysts expect Shopify to post earnings of $0.31 per share. This would mark year-over-year growth of 342.86%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.07 billion, indicating a 19.13% increase compared to the same quarter of the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shopify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.4% rise in the Zacks Consensus EPS estimate. Shopify is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 70.81 right now. This indicates a premium in contrast to its industry's Forward P/E of 24.03.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 50, finds itself in the top 20% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Shopify (SHOP) Exceeds Market Returns: Some Facts to Consider
Shopify (SHOP - Free Report) closed the latest trading day at $74.51, indicating a +1.48% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.18%. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw an increase of 0.1%.
Coming into today, shares of the cloud-based commerce company had gained 2.17% in the past month. In that same time, the Computer and Technology sector gained 1.84%, while the S&P 500 gained 2.75%.
Analysts and investors alike will be keeping a close eye on the performance of Shopify in its upcoming earnings disclosure. In that report, analysts expect Shopify to post earnings of $0.31 per share. This would mark year-over-year growth of 342.86%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.07 billion, indicating a 19.13% increase compared to the same quarter of the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shopify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.4% rise in the Zacks Consensus EPS estimate. Shopify is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 70.81 right now. This indicates a premium in contrast to its industry's Forward P/E of 24.03.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 50, finds itself in the top 20% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.