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Shopify (SHOP - Free Report) closed the most recent trading day at $110.42, moving +2.05% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.75% for the day. On the other hand, the Dow registered a gain of 1.86%, and the technology-centric Nasdaq increased by 2.54%.
Prior to today's trading, shares of the cloud-based commerce company had gained 13.42% outpaced the Computer and Technology sector's loss of 3.11% and the S&P 500's loss of 1.63%.
The upcoming earnings release of Shopify will be of great interest to investors. The company is forecasted to report an EPS of $0.39, showcasing a 11.43% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.43 billion, indicating a 28.03% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.8 per share and a revenue of $14.71 billion, demonstrating changes of +53.85% and +27.26%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Shopify. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Shopify holds a Zacks Rank of #3 (Hold).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 60.23. For comparison, its industry has an average Forward P/E of 15.6, which means Shopify is trading at a premium to the group.
One should further note that SHOP currently holds a PEG ratio of 2.3. 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. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.7.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 175, placing it within the bottom 29% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Shopify (SHOP) Laps the Stock Market: Here's Why
Shopify (SHOP - Free Report) closed the most recent trading day at $110.42, moving +2.05% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.75% for the day. On the other hand, the Dow registered a gain of 1.86%, and the technology-centric Nasdaq increased by 2.54%.
Prior to today's trading, shares of the cloud-based commerce company had gained 13.42% outpaced the Computer and Technology sector's loss of 3.11% and the S&P 500's loss of 1.63%.
The upcoming earnings release of Shopify will be of great interest to investors. The company is forecasted to report an EPS of $0.39, showcasing a 11.43% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.43 billion, indicating a 28.03% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.8 per share and a revenue of $14.71 billion, demonstrating changes of +53.85% and +27.26%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Shopify. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Shopify holds a Zacks Rank of #3 (Hold).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 60.23. For comparison, its industry has an average Forward P/E of 15.6, which means Shopify is trading at a premium to the group.
One should further note that SHOP currently holds a PEG ratio of 2.3. 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. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.7.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 175, placing it within the bottom 29% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.