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Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know
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Shopify (SHOP - Free Report) closed at $62.62 in the latest trading session, marking a -0.49% move from the prior day. This change lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.29%.
Coming into today, shares of the cloud-based commerce company had gained 13.72% in the past month. In that same time, the Computer and Technology sector gained 2.32%, while the S&P 500 gained 0.09%.
Investors will be hoping for strength from Shopify as it approaches its next earnings release. In that report, analysts expect Shopify to post earnings of $0.08 per share. This would mark year-over-year growth of 500%. Our most recent consensus estimate is calling for quarterly revenue of $1.64 billion, up 20.15% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.37 per share and revenue of $6.86 billion. These results would represent year-over-year changes of +825% and +22.42%, respectively.
Investors should also note any recent changes to analyst estimates for Shopify. Recent revisions tend to reflect the latest 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.
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. The Zacks Consensus EPS estimate has moved 15.15% higher within the past month. Shopify currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 169.17 right now. This valuation marks a premium compared to its industry's average Forward P/E of 31.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 109, putting it in the top 44% 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.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.
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Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know
Shopify (SHOP - Free Report) closed at $62.62 in the latest trading session, marking a -0.49% move from the prior day. This change lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.29%.
Coming into today, shares of the cloud-based commerce company had gained 13.72% in the past month. In that same time, the Computer and Technology sector gained 2.32%, while the S&P 500 gained 0.09%.
Investors will be hoping for strength from Shopify as it approaches its next earnings release. In that report, analysts expect Shopify to post earnings of $0.08 per share. This would mark year-over-year growth of 500%. Our most recent consensus estimate is calling for quarterly revenue of $1.64 billion, up 20.15% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.37 per share and revenue of $6.86 billion. These results would represent year-over-year changes of +825% and +22.42%, respectively.
Investors should also note any recent changes to analyst estimates for Shopify. Recent revisions tend to reflect the latest 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.
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. The Zacks Consensus EPS estimate has moved 15.15% higher within the past month. Shopify currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 169.17 right now. This valuation marks a premium compared to its industry's average Forward P/E of 31.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 109, putting it in the top 44% 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.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.