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Shopify (SHOP) Gains As Market Dips: What You Should Know

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In the latest trading session, Shopify (SHOP - Free Report) closed at $81.30, marking a +0.25% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.07%.

Coming into today, shares of the cloud-based commerce company had gained 9.8% in the past month. In that same time, the Computer and Technology sector gained 2.5%, while the S&P 500 gained 3.98%.

The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. It is anticipated that the company will report an EPS of $0.31, marking a 342.86% rise compared to the same quarter of the previous year. 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.

Investors should also note any recent changes to analyst estimates for Shopify. Such recent modifications usually signify the changing landscape 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. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Shopify presently features a Zacks Rank of #1 (Strong Buy).

Investors should also note Shopify's current valuation metrics, including its Forward P/E ratio of 78.22. This valuation marks a premium compared to its industry's average Forward P/E of 24.29.

The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 45, finds itself in the top 18% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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