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.
Shopify (SHOP) Registers a Bigger Fall Than the Market: Important Facts to Note
Read MoreHide Full Article
Shopify (SHOP - Free Report) closed the most recent trading day at $51, moving -0.27% from the previous trading session. This move lagged the S&P 500's daily loss of 0.17%. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq increased by 0.27%.
Shares of the cloud-based commerce company have depreciated by 3.65% over the course of the past month, underperforming the Computer and Technology sector's loss of 2.16% and outperforming the S&P 500's loss of 3.95%.
The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. The company is scheduled to release its earnings on November 2, 2023. In that report, analysts expect Shopify to post earnings of $0.14 per share. This would mark year-over-year growth of 800%. At the same time, our most recent consensus estimate is projecting a revenue of $1.66 billion, reflecting a 21.56% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.47 per share and a revenue of $6.91 billion, indicating changes of +1075% and +23.46%, respectively, from the former year.
Any recent changes to analyst estimates for Shopify should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 last 30 days, the Zacks Consensus EPS estimate has moved 48.57% higher. Shopify is currently a Zacks Rank #3 (Hold).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 108.19. This indicates a premium in contrast to its industry's Forward P/E of 24.71.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 101, placing it within the top 41% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Shopify (SHOP) Registers a Bigger Fall Than the Market: Important Facts to Note
Shopify (SHOP - Free Report) closed the most recent trading day at $51, moving -0.27% from the previous trading session. This move lagged the S&P 500's daily loss of 0.17%. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq increased by 0.27%.
Shares of the cloud-based commerce company have depreciated by 3.65% over the course of the past month, underperforming the Computer and Technology sector's loss of 2.16% and outperforming the S&P 500's loss of 3.95%.
The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. The company is scheduled to release its earnings on November 2, 2023. In that report, analysts expect Shopify to post earnings of $0.14 per share. This would mark year-over-year growth of 800%. At the same time, our most recent consensus estimate is projecting a revenue of $1.66 billion, reflecting a 21.56% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.47 per share and a revenue of $6.91 billion, indicating changes of +1075% and +23.46%, respectively, from the former year.
Any recent changes to analyst estimates for Shopify should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 last 30 days, the Zacks Consensus EPS estimate has moved 48.57% higher. Shopify is currently a Zacks Rank #3 (Hold).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 108.19. This indicates a premium in contrast to its industry's Forward P/E of 24.71.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 101, placing it within the top 41% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.