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Shopify (SHOP) Stock Slides as Market Rises: Facts to Know Before You Trade
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Shopify (SHOP - Free Report) closed the most recent trading day at $109.21, moving -4.31% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.38% for the day. Elsewhere, the Dow saw an upswing of 0.24%, while the tech-heavy Nasdaq appreciated by 0.24%.
Shares of the cloud-based commerce company witnessed a gain of 2.4% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 11.61%, and the S&P 500's gain of 6.6%.
Market participants will be closely following the financial results of Shopify in its upcoming release. The company's upcoming EPS is projected at $0.28, signifying a 7.69% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.54 billion, up 24.29% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.4 per share and a revenue of $10.85 billion, representing changes of +7.69% and +22.24%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Shopify. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Shopify currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Shopify is presently trading at a Forward P/E ratio of 81.67. This represents a premium compared to its industry average Forward P/E of 18.8.
It is also worth noting that SHOP currently has a PEG ratio of 4.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry had an average PEG ratio of 1.38 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 140, this industry ranks in the bottom 44% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Shopify (SHOP) Stock Slides as Market Rises: Facts to Know Before You Trade
Shopify (SHOP - Free Report) closed the most recent trading day at $109.21, moving -4.31% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.38% for the day. Elsewhere, the Dow saw an upswing of 0.24%, while the tech-heavy Nasdaq appreciated by 0.24%.
Shares of the cloud-based commerce company witnessed a gain of 2.4% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 11.61%, and the S&P 500's gain of 6.6%.
Market participants will be closely following the financial results of Shopify in its upcoming release. The company's upcoming EPS is projected at $0.28, signifying a 7.69% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.54 billion, up 24.29% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.4 per share and a revenue of $10.85 billion, representing changes of +7.69% and +22.24%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Shopify. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Shopify currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Shopify is presently trading at a Forward P/E ratio of 81.67. This represents a premium compared to its industry average Forward P/E of 18.8.
It is also worth noting that SHOP currently has a PEG ratio of 4.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry had an average PEG ratio of 1.38 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 140, this industry ranks in the bottom 44% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.