Shopify (SHOP - Free Report) closed the most recent trading day at $132.40, moving +1.68% from the previous trading session. This change outpaced the S&P 500's 0.86% gain on the day. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq gained 0.38%.
Heading into today, shares of the cloud-based commerce company had lost 13.17% over the past month, lagging the Computer and Technology sector's loss of 5.08% and the S&P 500's loss of 7.55% in that time.
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. In that report, analysts expect SHOP to post earnings of $0.21 per share. This would mark year-over-year growth of 40%. Meanwhile, our latest consensus estimate is calling for revenue of $327.13 million, up 46.82% from the prior-year quarter.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.31 per share and revenue of $1.05 billion. These results would represent year-over-year changes of +93.75% and +56.52%, respectively.
Investors might also notice recent changes to analyst estimates for SHOP. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.71% higher. SHOP is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that SHOP has a Forward P/E ratio of 414.53 right now. Its industry sports an average Forward P/E of 25.9, so we one might conclude that SHOP is trading at a premium comparatively.
We can also see that SHOP currently has a PEG ratio of 17.51. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.