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Shopify (SHOP) Stock Dips While Market Gains: Key Facts

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Shopify (SHOP - Free Report) ended the recent trading session at $71.57, demonstrating a -0.57% swing from the preceding day's closing price. This change lagged the S&P 500's 0.74% gain on the day. On the other hand, the Dow registered a loss of 0.01%, and the technology-centric Nasdaq increased by 1.68%.

Shares of the cloud-based commerce company witnessed a loss of 8.52% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.95% and the S&P 500's gain of 0.8%.

The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. On that day, Shopify is projected to report earnings of $0.16 per share, which would represent year-over-year growth of 1500%. 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.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.94 per share and a revenue of $8.48 billion, indicating changes of +27.03% and +20.07%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Shopify. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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 remained steady. Currently, Shopify is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 76.22 right now. This signifies a premium in comparison to the average Forward P/E of 25 for its industry.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 57, this industry ranks in the top 23% of all industries, numbering over 250.

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.

To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.


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