In the latest trading session, Shopify (SHOP - Free Report) closed at $297.01, marking a +1.53% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.71%, while the tech-heavy Nasdaq added 0.53%.
Coming into today, shares of the cloud-based commerce company had gained 11.86% in the past month. In that same time, the Computer and Technology sector lost 8.25%, while the S&P 500 lost 3.77%.
Wall Street will be looking for positivity from SHOP as it approaches its next earnings report date. On that day, SHOP is projected to report earnings of $0.03 per share, which would represent year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $350.06 million, up 42.9% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.55 per share and revenue of $1.51 billion. These totals would mark changes of +44.74% and +40.24%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for SHOP. These revisions help to show the ever-changing nature of near-term business trends. 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. Within the past 30 days, our consensus EPS projection has moved 5.49% higher. SHOP currently has a Zacks Rank of #3 (Hold).
Investors should also note SHOP's current valuation metrics, including its Forward P/E ratio of 536.14. Its industry sports an average Forward P/E of 30.16, 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 14.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.85 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.