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Shopify (SHOP) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Shopify (SHOP - Free Report) closed the most recent trading day at $142.33, moving -3.66% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.76% for the day. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.13%.
Shares of the cloud-based commerce company witnessed a loss of 3.99% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.68%, and the S&P 500's gain of 1.26%.
The upcoming earnings release of Shopify will be of great interest to investors. The company is expected to report EPS of $0.44, up 29.41% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $3.73 billion, indicating a 31.22% increase compared to the same quarter of the previous year.
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.
Investors should also pay attention to any latest changes in analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.1% upward. Right now, Shopify possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Shopify is presently being traded at a Forward P/E ratio of 78.06. This denotes a premium relative to the industry average Forward P/E of 16.02.
It's also important to note that SHOP currently trades at a PEG ratio of 2.31. 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 Internet - Services industry had an average PEG ratio of 1.67 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 181, finds itself in the bottom 27% echelons 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) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Shopify (SHOP - Free Report) closed the most recent trading day at $142.33, moving -3.66% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.76% for the day. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.13%.
Shares of the cloud-based commerce company witnessed a loss of 3.99% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.68%, and the S&P 500's gain of 1.26%.
The upcoming earnings release of Shopify will be of great interest to investors. The company is expected to report EPS of $0.44, up 29.41% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $3.73 billion, indicating a 31.22% increase compared to the same quarter of the previous year.
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.
Investors should also pay attention to any latest changes in analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.1% upward. Right now, Shopify possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Shopify is presently being traded at a Forward P/E ratio of 78.06. This denotes a premium relative to the industry average Forward P/E of 16.02.
It's also important to note that SHOP currently trades at a PEG ratio of 2.31. 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 Internet - Services industry had an average PEG ratio of 1.67 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 181, finds itself in the bottom 27% echelons 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.