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Shopify (SHOP) Declines More Than Market: Some Information for Investors
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Shopify (SHOP - Free Report) closed the most recent trading day at $115.43, moving -2.52% from the previous trading session. This change lagged the S&P 500's daily loss of 1.74%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 2.38%.
The stock of cloud-based commerce company has fallen by 1.57% in the past month, leading the Computer and Technology sector's loss of 5.77% and the S&P 500's loss of 4.99%.
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 $0.32 per share, which would represent year-over-year growth of 28%. Meanwhile, our latest consensus estimate is calling for revenue of $3.08 billion, up 30.59% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.78 per share and a revenue of $14.53 billion, representing changes of +52.14% and +25.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Shopify. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.25% increase. Shopify is currently a Zacks Rank #3 (Hold).
In terms of valuation, Shopify is presently being traded at a Forward P/E ratio of 66.64. This valuation marks a premium compared to its industry average Forward P/E of 15.83.
We can also see that SHOP currently has a PEG ratio of 3.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services was holding an average PEG ratio of 1.7 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 179, this industry ranks in the bottom 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Shopify (SHOP) Declines More Than Market: Some Information for Investors
Shopify (SHOP - Free Report) closed the most recent trading day at $115.43, moving -2.52% from the previous trading session. This change lagged the S&P 500's daily loss of 1.74%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 2.38%.
The stock of cloud-based commerce company has fallen by 1.57% in the past month, leading the Computer and Technology sector's loss of 5.77% and the S&P 500's loss of 4.99%.
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 $0.32 per share, which would represent year-over-year growth of 28%. Meanwhile, our latest consensus estimate is calling for revenue of $3.08 billion, up 30.59% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.78 per share and a revenue of $14.53 billion, representing changes of +52.14% and +25.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Shopify. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.25% increase. Shopify is currently a Zacks Rank #3 (Hold).
In terms of valuation, Shopify is presently being traded at a Forward P/E ratio of 66.64. This valuation marks a premium compared to its industry average Forward P/E of 15.83.
We can also see that SHOP currently has a PEG ratio of 3.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services was holding an average PEG ratio of 1.7 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 179, this industry ranks in the bottom 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.