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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 $102.52, marking a -1.69% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.33%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.53%.
The the stock of cloud-based commerce company has fallen by 7.9% in the past month, lagging the Computer and Technology sector's loss of 7.14% and the S&P 500's loss of 4.03%.
The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.26, reflecting a 30% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.33 billion, reflecting a 25.28% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.49 per share and a revenue of $10.86 billion, demonstrating changes of +14.62% and +22.29%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Shopify. These revisions help to show the ever-changing nature 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, the Zacks Consensus EPS estimate remained stagnant. Shopify is currently a Zacks Rank #3 (Hold).
Looking at valuation, Shopify is presently trading at a Forward P/E ratio of 70.21. For comparison, its industry has an average Forward P/E of 21.63, which means Shopify is trading at a premium to the group.
It's also important to note that SHOP currently trades at a PEG ratio of 3.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services industry had an average PEG ratio of 1.31 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 131, positioning it in the bottom 48% 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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Shopify (SHOP) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Shopify (SHOP - Free Report) closed at $102.52, marking a -1.69% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.33%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.53%.
The the stock of cloud-based commerce company has fallen by 7.9% in the past month, lagging the Computer and Technology sector's loss of 7.14% and the S&P 500's loss of 4.03%.
The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.26, reflecting a 30% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.33 billion, reflecting a 25.28% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.49 per share and a revenue of $10.86 billion, demonstrating changes of +14.62% and +22.29%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Shopify. These revisions help to show the ever-changing nature 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, the Zacks Consensus EPS estimate remained stagnant. Shopify is currently a Zacks Rank #3 (Hold).
Looking at valuation, Shopify is presently trading at a Forward P/E ratio of 70.21. For comparison, its industry has an average Forward P/E of 21.63, which means Shopify is trading at a premium to the group.
It's also important to note that SHOP currently trades at a PEG ratio of 3.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services industry had an average PEG ratio of 1.31 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 131, positioning it in the bottom 48% 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.