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Shopify (SHOP) Stock Moves -1.1%: What You Should Know

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Shopify (SHOP - Free Report) closed the most recent trading day at $74.81, moving -1.1% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.23%. At the same time, the Dow lost 1.36%, and the tech-heavy Nasdaq lost 1.4%.

Coming into today, shares of the cloud-based commerce company had gained 2.2% in the past month. In that same time, the Computer and Technology sector gained 2.32%, while the S&P 500 gained 1.61%.

The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. The company's upcoming EPS is projected at $0.16, signifying a 1500% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.83 billion, indicating a 21.24% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.94 per share and revenue of $8.48 billion. These totals would mark changes of +27.03% and +20.07%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Shopify. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Shopify is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Shopify currently has a Forward P/E ratio of 80.1. This denotes a premium relative to the industry's average Forward P/E of 23.16.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 45, positioning it in the top 18% of all 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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