We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why the Market Dipped But Shopify (SHOP) Gained Today
Read MoreHide Full Article
Shopify (SHOP - Free Report) closed at $148.26 in the latest trading session, marking a +2.95% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.17%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.09%.
Shares of the cloud-based commerce company have depreciated by 2.28% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.58%, and the S&P 500's loss of 0.24%.
Market participants will be closely following the financial results of Shopify in its upcoming release. On that day, Shopify is projected to report earnings of $0.44 per share, which would represent year-over-year growth of 29.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.73 billion, up 31.22% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.89 per share and revenue of $15.18 billion, indicating changes of +61.54% and +31.33%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Shopify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. Shopify is currently a Zacks Rank #3 (Hold).
Digging into valuation, Shopify currently has a Forward P/E ratio of 76.09. Its industry sports an average Forward P/E of 15.5, so one might conclude that Shopify is trading at a premium comparatively.
We can additionally observe that SHOP currently boasts a PEG ratio of 2.26. 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 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. This group has a Zacks Industry Rank of 203, putting it in the bottom 18% 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.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
Image: Bigstock
Why the Market Dipped But Shopify (SHOP) Gained Today
Shopify (SHOP - Free Report) closed at $148.26 in the latest trading session, marking a +2.95% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.17%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.09%.
Shares of the cloud-based commerce company have depreciated by 2.28% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.58%, and the S&P 500's loss of 0.24%.
Market participants will be closely following the financial results of Shopify in its upcoming release. On that day, Shopify is projected to report earnings of $0.44 per share, which would represent year-over-year growth of 29.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.73 billion, up 31.22% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.89 per share and revenue of $15.18 billion, indicating changes of +61.54% and +31.33%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Shopify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. Shopify is currently a Zacks Rank #3 (Hold).
Digging into valuation, Shopify currently has a Forward P/E ratio of 76.09. Its industry sports an average Forward P/E of 15.5, so one might conclude that Shopify is trading at a premium comparatively.
We can additionally observe that SHOP currently boasts a PEG ratio of 2.26. 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 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. This group has a Zacks Industry Rank of 203, putting it in the bottom 18% 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.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.