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Shopify (SHOP) Gains But Lags Market: What You Should Know
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Shopify (SHOP - Free Report) closed the most recent trading day at $156.60, moving +0.2% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.08%.
Coming into today, shares of the cloud-based commerce company had gained 31.22% in the past month. In that same time, the Computer and Technology sector gained 7.59%, while the S&P 500 gained 9.27%.
SHOP will be looking to display strength as it nears its next earnings release, which is expected to be February 12, 2019. On that day, SHOP is projected to report earnings of $0.21 per share, which would represent year-over-year growth of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $327.13 million, up 46.82% from the year-ago period.
It is also important to note the recent changes to analyst estimates for SHOP. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SHOP currently has a Zacks Rank of #4 (Sell).
Investors should also note SHOP's current valuation metrics, including its Forward P/E ratio of 231.83. This represents a premium compared to its industry's average Forward P/E of 27.79.
Investors should also note that SHOP has a PEG ratio of 9.8 right now. 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 was holding an average PEG ratio of 2.43 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 88, which puts it in the top 35% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Shopify (SHOP) Gains But Lags Market: What You Should Know
Shopify (SHOP - Free Report) closed the most recent trading day at $156.60, moving +0.2% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.08%.
Coming into today, shares of the cloud-based commerce company had gained 31.22% in the past month. In that same time, the Computer and Technology sector gained 7.59%, while the S&P 500 gained 9.27%.
SHOP will be looking to display strength as it nears its next earnings release, which is expected to be February 12, 2019. On that day, SHOP is projected to report earnings of $0.21 per share, which would represent year-over-year growth of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $327.13 million, up 46.82% from the year-ago period.
It is also important to note the recent changes to analyst estimates for SHOP. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SHOP currently has a Zacks Rank of #4 (Sell).
Investors should also note SHOP's current valuation metrics, including its Forward P/E ratio of 231.83. This represents a premium compared to its industry's average Forward P/E of 27.79.
Investors should also note that SHOP has a PEG ratio of 9.8 right now. 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 was holding an average PEG ratio of 2.43 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 88, which puts it in the top 35% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.