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In the latest trading session, Shopify (SHOP - Free Report) closed at $164.14, marking a +2.52% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 0.45%.
The stock of cloud-based commerce company has risen by 10.35% in the past month, leading the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 0.84%.
The upcoming earnings release of Shopify will be of great interest to investors. The company is forecasted to report an EPS of $0.44, showcasing a 29.41% upward movement from the corresponding quarter of the prior year. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.89 per share and revenue of $15.18 billion. These totals would mark changes of +61.54% and +31.33%, respectively, from last 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. Shopify currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 84.6. This signifies a premium in comparison to the average Forward P/E of 15.28 for its industry.
We can also see that SHOP currently has a PEG ratio of 2.55. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.78.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Shopify (SHOP) Laps the Stock Market: Here's Why
In the latest trading session, Shopify (SHOP - Free Report) closed at $164.14, marking a +2.52% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 0.45%.
The stock of cloud-based commerce company has risen by 10.35% in the past month, leading the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 0.84%.
The upcoming earnings release of Shopify will be of great interest to investors. The company is forecasted to report an EPS of $0.44, showcasing a 29.41% upward movement from the corresponding quarter of the prior year. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.89 per share and revenue of $15.18 billion. These totals would mark changes of +61.54% and +31.33%, respectively, from last 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. Shopify currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 84.6. This signifies a premium in comparison to the average Forward P/E of 15.28 for its industry.
We can also see that SHOP currently has a PEG ratio of 2.55. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.78.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.