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Shopify (SHOP) Dips More Than Broader Markets: What You Should Know
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Shopify (SHOP - Free Report) closed the most recent trading day at $64.78, moving -1.58% from the previous trading session. This move lagged the S&P 500's daily loss of 0.32%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq lost 0.89%.
Prior to today's trading, shares of the cloud-based commerce company had gained 19.24% over the past month. This has outpaced the Computer and Technology sector's gain of 1.88% and the S&P 500's loss of 0.12% in that time.
Wall Street will be looking for positivity from Shopify as it approaches its next earnings report date. On that day, Shopify is projected to report earnings of $0.09 per share, which would represent year-over-year growth of 550%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.64 billion, up 20.15% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.35 per share and revenue of $6.86 billion. These results would represent year-over-year changes of +775% and +22.42%, respectively.
Investors might also notice recent changes to analyst estimates for Shopify. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 27.27% higher. Shopify is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 186.99. Its industry sports an average Forward P/E of 30.97, so we one might conclude that Shopify is trading at a premium comparatively.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% 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.
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Shopify (SHOP) Dips More Than Broader Markets: What You Should Know
Shopify (SHOP - Free Report) closed the most recent trading day at $64.78, moving -1.58% from the previous trading session. This move lagged the S&P 500's daily loss of 0.32%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq lost 0.89%.
Prior to today's trading, shares of the cloud-based commerce company had gained 19.24% over the past month. This has outpaced the Computer and Technology sector's gain of 1.88% and the S&P 500's loss of 0.12% in that time.
Wall Street will be looking for positivity from Shopify as it approaches its next earnings report date. On that day, Shopify is projected to report earnings of $0.09 per share, which would represent year-over-year growth of 550%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.64 billion, up 20.15% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.35 per share and revenue of $6.86 billion. These results would represent year-over-year changes of +775% and +22.42%, respectively.
Investors might also notice recent changes to analyst estimates for Shopify. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 27.27% higher. Shopify is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 186.99. Its industry sports an average Forward P/E of 30.97, so we one might conclude that Shopify is trading at a premium comparatively.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% 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.