We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: Shopify, Amazon and Walmart
Read MoreHide Full Article
For Immediate Release
Chicago, IL –June 26, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Shopify (SHOP - Free Report) , Amazon (AMZN - Free Report) and Walmart (WMT - Free Report) .
Shopify has been making noise as a possible Amazon alternative, and analysts are giving the Canada-based company a fighting chance against the ecommerce giant. Shopify unveiled its “shopper fulfillment network” last week that will allow third party merchants to better compete with Amazon’s delivery times. Analysts received the news of Shopify’s latest endeavor with open arms and the stock spiked 7% last week, adding to an already successful year of growth for the company. Through this latest venture, the company is acquiring new warehouses in various parts in the U.S and Canada. In addition, Shopify is also utilizing AI technology in order to get consumers their goods at a faster and more efficient rate.
Analyst Hype
Consumer packaged goods is one area where analysts at Rosenblatt believe that Shopify can thrive. This allows a business to take its product directly to the consumer and avoid competition from the likes of Amazon or Walmart. Analysts at the firm went on to say “Consumer packaged brands have long been squeezed on the margin (pun intended) by Amazon and Walmart,” furthering the notion of an underlying opportunity for a business such as Shopify. This untapped facet of the industry could catapult Shopify into a position where it can actually compete with the likes of Amazon for a significant portion of the market.
Additionally, Summit Insights pointed out that Shopify’s new network can also appeal to merchants who are wary of Amazon’s white labeling practices. White labeling is a product or service produced by one company that other companies rebrand to make it appear as if they had made it. The firm commented “Merchants have expressed reservations when doing business on Amazon’s platform including concerns of Amazon white labeling their own product to compete,” displaying the existential precautious sentiment towards the Amazon practice. Summit went on to say that Shopify provides an appealing alternative to Amazon.
Bottom Line
Shopify is currently listed at a Zacks Rank #3 (Hold) with a Style Score of A in Growth. Our Zacks Consensus Estimates are currently calling for 100% earnings growth on top of a 42.9% revenue increase for the current quarter. This colossal triple digit earnings growth is expected to continue through the next fiscal quarter and decelerate to double digit growth for the remainder of this year and through the next.
Shopify also has a strong earnings history, boasting an average earnings surprise of 176%. And just last quarter, the company was able to beat our consensus estimate by 280%.
Furthermore, Shopify has been able to leave the broader Computer Software-Services industry in the rear-view mirror, outpacing its peers since 2016.
While Shopify’s growth has been undeniably remarkable, the stock does face some valuation issues. Shopify has a Zacks Style Score of F in Value, as it is currently trading at 546X its forward earnings to go along with a PEG ratio of 23.08. Both metrics are substantially higher than the industry averages. While potential investors will be paying for the stock’s growth up front, Shopify has the potential to sustain its incredible growth if they can continue to create innovative initiatives that can put them into serious competition with the likes of Amazon.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: Shopify, Amazon and Walmart
For Immediate Release
Chicago, IL –June 26, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Shopify (SHOP - Free Report) , Amazon (AMZN - Free Report) and Walmart (WMT - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Buy Shopify (SHOP - Free Report) Amid Analyst Optimism?
Shopify has been making noise as a possible Amazon alternative, and analysts are giving the Canada-based company a fighting chance against the ecommerce giant. Shopify unveiled its “shopper fulfillment network” last week that will allow third party merchants to better compete with Amazon’s delivery times. Analysts received the news of Shopify’s latest endeavor with open arms and the stock spiked 7% last week, adding to an already successful year of growth for the company. Through this latest venture, the company is acquiring new warehouses in various parts in the U.S and Canada. In addition, Shopify is also utilizing AI technology in order to get consumers their goods at a faster and more efficient rate.
Analyst Hype
Consumer packaged goods is one area where analysts at Rosenblatt believe that Shopify can thrive. This allows a business to take its product directly to the consumer and avoid competition from the likes of Amazon or Walmart. Analysts at the firm went on to say “Consumer packaged brands have long been squeezed on the margin (pun intended) by Amazon and Walmart,” furthering the notion of an underlying opportunity for a business such as Shopify. This untapped facet of the industry could catapult Shopify into a position where it can actually compete with the likes of Amazon for a significant portion of the market.
Additionally, Summit Insights pointed out that Shopify’s new network can also appeal to merchants who are wary of Amazon’s white labeling practices. White labeling is a product or service produced by one company that other companies rebrand to make it appear as if they had made it. The firm commented “Merchants have expressed reservations when doing business on Amazon’s platform including concerns of Amazon white labeling their own product to compete,” displaying the existential precautious sentiment towards the Amazon practice. Summit went on to say that Shopify provides an appealing alternative to Amazon.
Bottom Line
Shopify is currently listed at a Zacks Rank #3 (Hold) with a Style Score of A in Growth. Our Zacks Consensus Estimates are currently calling for 100% earnings growth on top of a 42.9% revenue increase for the current quarter. This colossal triple digit earnings growth is expected to continue through the next fiscal quarter and decelerate to double digit growth for the remainder of this year and through the next.
Shopify also has a strong earnings history, boasting an average earnings surprise of 176%. And just last quarter, the company was able to beat our consensus estimate by 280%.
Furthermore, Shopify has been able to leave the broader Computer Software-Services industry in the rear-view mirror, outpacing its peers since 2016.
While Shopify’s growth has been undeniably remarkable, the stock does face some valuation issues. Shopify has a Zacks Style Score of F in Value, as it is currently trading at 546X its forward earnings to go along with a PEG ratio of 23.08. Both metrics are substantially higher than the industry averages. While potential investors will be paying for the stock’s growth up front, Shopify has the potential to sustain its incredible growth if they can continue to create innovative initiatives that can put them into serious competition with the likes of Amazon.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.