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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 $119.22, marking a -2.18% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. At the same time, the Dow lost 1.09%, and the tech-heavy Nasdaq gained 0.2%.
The cloud-based commerce company's shares have seen an increase of 10.38% over the last month, surpassing the Computer and Technology sector's loss of 1.22% and the S&P 500's gain of 1.64%.
Market participants will be closely following the financial results 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. Simultaneously, our latest consensus estimate expects the revenue to be $3.43 billion, showing a 28.03% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.83 per share and revenue of $14.71 billion. These totals would mark changes of +56.41% and +27.26%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Shopify. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Shopify is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Shopify is holding a Forward P/E ratio of 66.52. This expresses a premium compared to the average Forward P/E of 16.05 of its industry.
Meanwhile, SHOP's PEG ratio is currently 1.92. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.58 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 112, placing it within the top 46% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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 $119.22, marking a -2.18% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. At the same time, the Dow lost 1.09%, and the tech-heavy Nasdaq gained 0.2%.
The cloud-based commerce company's shares have seen an increase of 10.38% over the last month, surpassing the Computer and Technology sector's loss of 1.22% and the S&P 500's gain of 1.64%.
Market participants will be closely following the financial results 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. Simultaneously, our latest consensus estimate expects the revenue to be $3.43 billion, showing a 28.03% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.83 per share and revenue of $14.71 billion. These totals would mark changes of +56.41% and +27.26%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Shopify. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Shopify is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Shopify is holding a Forward P/E ratio of 66.52. This expresses a premium compared to the average Forward P/E of 16.05 of its industry.
Meanwhile, SHOP's PEG ratio is currently 1.92. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.58 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 112, placing it within the top 46% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.