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Shopify (SHOP) Registers a Bigger Fall Than the Market: Important Facts to Note
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Shopify (SHOP - Free Report) ended the recent trading session at $130.36, demonstrating a -2.64% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.78%.
Shares of the cloud-based commerce company witnessed a loss of 9.93% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 1.27%, and the S&P 500's loss of 1.99%.
The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. The company's upcoming EPS is projected at $0.44, signifying a 29.41% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.73 billion, showing a 31.22% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.89 per share and a revenue of $15.18 billion, signifying shifts of +61.54% and +31.33%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. Shopify is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Shopify is currently exchanging hands at a Forward P/E ratio of 70.97. This expresses a premium compared to the average Forward P/E of 15.86 of its industry.
We can also see that SHOP currently has a PEG ratio of 2.1. 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. The average PEG ratio for the Internet - Services industry stood at 1.56 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 33% of all 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) Registers a Bigger Fall Than the Market: Important Facts to Note
Shopify (SHOP - Free Report) ended the recent trading session at $130.36, demonstrating a -2.64% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.78%.
Shares of the cloud-based commerce company witnessed a loss of 9.93% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 1.27%, and the S&P 500's loss of 1.99%.
The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. The company's upcoming EPS is projected at $0.44, signifying a 29.41% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.73 billion, showing a 31.22% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.89 per share and a revenue of $15.18 billion, signifying shifts of +61.54% and +31.33%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. Shopify is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Shopify is currently exchanging hands at a Forward P/E ratio of 70.97. This expresses a premium compared to the average Forward P/E of 15.86 of its industry.
We can also see that SHOP currently has a PEG ratio of 2.1. 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. The average PEG ratio for the Internet - Services industry stood at 1.56 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 33% of all 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.