In the latest trading session, Shopify (SHOP - Free Report) closed at $332.49, marking a -1.29% move from the previous day. This change lagged the S&P 500's 0.47% gain on the day. Meanwhile, the Dow gained 0.95%, and the Nasdaq, a tech-heavy index, added 2.3%.
Coming into today, shares of the cloud-based commerce company had lost 37.99% in the past month. In that same time, the Computer and Technology sector lost 28.18%, while the S&P 500 lost 28.7%.
SHOP will be looking to display strength as it nears its next earnings release. In that report, analysts expect SHOP to post earnings of -$0.17 per share. This would mark a year-over-year decline of 288.89%. Our most recent consensus estimate is calling for quarterly revenue of $445.47 million, up 39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.21 per share and revenue of $2.17 billion. These totals would mark changes of -30% and +37.42%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SHOP. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 3.07% lower. SHOP currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that SHOP has a Forward P/E ratio of 1619.38 right now. Its industry sports an average Forward P/E of 22.57, so we one might conclude that SHOP is trading at a premium comparatively.
Meanwhile, SHOP's PEG ratio is currently 64.78. 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. The Internet - Services industry currently had an average PEG ratio of 1.6 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 90, which puts it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.