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Shopify (SHOP) Declines More Than Market: Some Information for Investors
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In the latest trading session, Shopify (SHOP - Free Report) closed at $108.09, marking a -4.54% move from the previous day. This change lagged the S&P 500's daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
Heading into today, shares of the cloud-based commerce company had gained 12.1% over the past month, outpacing the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 1.56%.
The upcoming earnings release of Shopify will be of great interest to investors. The company is expected to report EPS of $0.39, up 11.43% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.43 billion, indicating a 28.03% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.8 per share and a revenue of $14.71 billion, signifying shifts of +53.85% and +27.26%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Shopify is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Shopify is currently being traded at a Forward P/E ratio of 63.03. Its industry sports an average Forward P/E of 15.84, so one might conclude that Shopify is trading at a premium comparatively.
We can also see that SHOP currently has a PEG ratio of 2.41. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Services industry stood at 1.63 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 166, this industry ranks in the bottom 32% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
View the Zacks #1 Rank List
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Shopify (SHOP) Declines More Than Market: Some Information for Investors
In the latest trading session, Shopify (SHOP - Free Report) closed at $108.09, marking a -4.54% move from the previous day. This change lagged the S&P 500's daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
Heading into today, shares of the cloud-based commerce company had gained 12.1% over the past month, outpacing the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 1.56%.
The upcoming earnings release of Shopify will be of great interest to investors. The company is expected to report EPS of $0.39, up 11.43% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.43 billion, indicating a 28.03% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.8 per share and a revenue of $14.71 billion, signifying shifts of +53.85% and +27.26%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Shopify is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Shopify is currently being traded at a Forward P/E ratio of 63.03. Its industry sports an average Forward P/E of 15.84, so one might conclude that Shopify is trading at a premium comparatively.
We can also see that SHOP currently has a PEG ratio of 2.41. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Services industry stood at 1.63 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 166, this industry ranks in the bottom 32% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.