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Shopify (SHOP) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, Shopify (SHOP - Free Report) closed at $81.40, marking a -1.84% move from the previous day. This change lagged the S&P 500's 0.32% loss on the day. Elsewhere, the Dow saw a downswing of 0.71%, while the tech-heavy Nasdaq depreciated by 0.2%.
The cloud-based commerce company's stock has climbed by 11.3% in the past month, exceeding the Computer and Technology sector's gain of 9.33% and the S&P 500's gain of 4.59%.
Market participants will be closely following the financial results of Shopify in its upcoming release. The company plans to announce its earnings on February 13, 2024. The company is forecasted to report an EPS of $0.31, showcasing a 342.86% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.07 billion, indicating a 19.21% increase compared to the same quarter of the previous year.
Investors might also notice recent changes 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 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.09% rise in the Zacks Consensus EPS estimate. As of now, Shopify holds a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Shopify is presently trading at a Forward P/E ratio of 79.45. This denotes a premium relative to the industry's average Forward P/E of 23.78.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Shopify (SHOP) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Shopify (SHOP - Free Report) closed at $81.40, marking a -1.84% move from the previous day. This change lagged the S&P 500's 0.32% loss on the day. Elsewhere, the Dow saw a downswing of 0.71%, while the tech-heavy Nasdaq depreciated by 0.2%.
The cloud-based commerce company's stock has climbed by 11.3% in the past month, exceeding the Computer and Technology sector's gain of 9.33% and the S&P 500's gain of 4.59%.
Market participants will be closely following the financial results of Shopify in its upcoming release. The company plans to announce its earnings on February 13, 2024. The company is forecasted to report an EPS of $0.31, showcasing a 342.86% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.07 billion, indicating a 19.21% increase compared to the same quarter of the previous year.
Investors might also notice recent changes 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 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.09% rise in the Zacks Consensus EPS estimate. As of now, Shopify holds a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Shopify is presently trading at a Forward P/E ratio of 79.45. This denotes a premium relative to the industry's average Forward P/E of 23.78.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.