In the latest trading session, Shopify (SHOP - Free Report) closed at $206.43, marking a +1.21% move from the previous day. This change outpaced the S&P 500's 0.35% gain on the day. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 0.7%.
Prior to today's trading, shares of the cloud-based commerce company had gained 0.74% over the past month. This has lagged the Computer and Technology sector's gain of 6.69% and the S&P 500's gain of 5.14% in that time.
Investors will be hoping for strength from SHOP as it approaches its next earnings release, which is expected to be April 30, 2019. In that report, analysts expect SHOP to post earnings of -$0.04 per share. This would mark a year-over-year decline of 200%. Our most recent consensus estimate is calling for quarterly revenue of $309.14 million, up 44.23% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.42 per share and revenue of $1.49 billion. These results would represent year-over-year changes of +10.53% and +38.72%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.41% lower. SHOP is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, SHOP is currently trading at a Forward P/E ratio of 483.7. For comparison, its industry has an average Forward P/E of 25.39, which means SHOP is trading at a premium to the group.
Also, we should mention that SHOP has a PEG ratio of 20.44. 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. Internet - Services stocks are, on average, holding a PEG ratio of 3.37 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.