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Shopify (SHOP) Stock Moves -1.78%: What You Should Know
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Shopify (SHOP - Free Report) closed at $119.46 in the latest trading session, marking a -1.78% move from the prior day. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq lost 0.8%.
The cloud-based commerce company's stock has climbed by 7.69% in the past month, exceeding the Computer and Technology sector's loss of 5.47% and the S&P 500's loss of 1.43%.
The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. The company is predicted to post an EPS of $0.39, indicating a 11.43% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.43 billion, indicating a 28.03% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.82 per share and revenue of $14.71 billion, indicating changes of +55.56% and +27.26%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Shopify. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Shopify presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Shopify is holding a Forward P/E ratio of 66.75. Its industry sports an average Forward P/E of 15.33, so one might conclude that Shopify is trading at a premium comparatively.
It is also worth noting that SHOP currently has a PEG ratio of 2.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.67.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 108, putting it in the top 44% of all 250+ industries.
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.
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) Stock Moves -1.78%: What You Should Know
Shopify (SHOP - Free Report) closed at $119.46 in the latest trading session, marking a -1.78% move from the prior day. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq lost 0.8%.
The cloud-based commerce company's stock has climbed by 7.69% in the past month, exceeding the Computer and Technology sector's loss of 5.47% and the S&P 500's loss of 1.43%.
The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. The company is predicted to post an EPS of $0.39, indicating a 11.43% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.43 billion, indicating a 28.03% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.82 per share and revenue of $14.71 billion, indicating changes of +55.56% and +27.26%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Shopify. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Shopify presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Shopify is holding a Forward P/E ratio of 66.75. Its industry sports an average Forward P/E of 15.33, so one might conclude that Shopify is trading at a premium comparatively.
It is also worth noting that SHOP currently has a PEG ratio of 2.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.67.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 108, putting it in the top 44% of all 250+ industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.