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Shopify (SHOP) Stock Slides as Market Rises: Facts to Know Before You Trade
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In the latest trading session, Shopify (SHOP - Free Report) closed at $117.14, marking a -1.4% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.18%, while the tech-heavy Nasdaq appreciated by 0.1%.
The cloud-based commerce company's stock has dropped by 11.01% in the past month, falling short of the Computer and Technology sector's loss of 2.82% and the S&P 500's loss of 1.74%.
Investors will be eagerly watching for the performance of Shopify in its upcoming earnings disclosure. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $1.78 per share and a revenue of $14.52 billion, signifying shifts of +52.14% and +25.68%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Shopify. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 past month, the Zacks Consensus EPS estimate has moved 1.25% higher. Right now, Shopify possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Shopify is currently being traded at a Forward P/E ratio of 66.85. This indicates a premium in contrast to its industry's Forward P/E of 14.01.
It is also worth noting that SHOP currently has a PEG ratio of 3.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. SHOP's industry had an average PEG ratio of 1.89 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 27% 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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Shopify (SHOP) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest trading session, Shopify (SHOP - Free Report) closed at $117.14, marking a -1.4% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.18%, while the tech-heavy Nasdaq appreciated by 0.1%.
The cloud-based commerce company's stock has dropped by 11.01% in the past month, falling short of the Computer and Technology sector's loss of 2.82% and the S&P 500's loss of 1.74%.
Investors will be eagerly watching for the performance of Shopify in its upcoming earnings disclosure. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $1.78 per share and a revenue of $14.52 billion, signifying shifts of +52.14% and +25.68%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Shopify. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 past month, the Zacks Consensus EPS estimate has moved 1.25% higher. Right now, Shopify possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Shopify is currently being traded at a Forward P/E ratio of 66.85. This indicates a premium in contrast to its industry's Forward P/E of 14.01.
It is also worth noting that SHOP currently has a PEG ratio of 3.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. SHOP's industry had an average PEG ratio of 1.89 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 27% 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.