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Shopify (SHOP) Falls More Steeply Than Broader Market: What Investors Need to Know
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Shopify (SHOP - Free Report) closed at $80.32 in the latest trading session, marking a -1.23% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.56%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
Shares of the cloud-based commerce company witnessed a gain of 3.79% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.27% and the S&P 500's gain of 1.2%.
The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. The company is predicted to post an EPS of $0.31, indicating a 342.86% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.07 billion, indicating a 19.19% upward movement from the same quarter last year.
Investors should also note any recent changes 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.99% upward. At present, Shopify boasts a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Shopify is holding a Forward P/E ratio of 77.96. This signifies a premium in comparison to the average Forward P/E of 23.76 for its industry.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 26% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Shopify (SHOP) Falls More Steeply Than Broader Market: What Investors Need to Know
Shopify (SHOP - Free Report) closed at $80.32 in the latest trading session, marking a -1.23% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.56%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
Shares of the cloud-based commerce company witnessed a gain of 3.79% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.27% and the S&P 500's gain of 1.2%.
The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. The company is predicted to post an EPS of $0.31, indicating a 342.86% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.07 billion, indicating a 19.19% upward movement from the same quarter last year.
Investors should also note any recent changes 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.99% upward. At present, Shopify boasts a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Shopify is holding a Forward P/E ratio of 77.96. This signifies a premium in comparison to the average Forward P/E of 23.76 for its industry.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 26% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.