In the latest trading session, Shopify (SHOP - Free Report) closed at $132.61, marking a -1.3% move from the previous day. This change lagged the S&P 500's 0.3% gain on the day. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.
Coming into today, shares of the cloud-based commerce company had gained 8.46% in the past month. In that same time, the Computer and Technology sector lost 6.3%, while the S&P 500 lost 4.06%.
Wall Street will be looking for positivity from SHOP as it approaches its next earnings report date. This is expected to be February 21, 2019. The company is expected to report EPS of $0.20, up 33.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $327.13 million, up 46.82% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.31 per share and revenue of $1.05 billion. These totals would mark changes of +93.75% and +56.57%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for SHOP. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 14.72% higher within the past month. SHOP is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note SHOP's current valuation metrics, including its Forward P/E ratio of 426.91. This represents a premium compared to its industry's average Forward P/E of 29.59.
Meanwhile, SHOP's PEG ratio is currently 17.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 2.16 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.