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Shopify (SHOP) Stock Declines While Market Improves: Some Information for Investors
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Shopify (SHOP - Free Report) closed the latest trading day at $64.69, indicating a -1.19% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.23%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 0.34%.
Coming into today, shares of the cloud-based commerce company had gained 11.4% in the past month. In that same time, the Computer and Technology sector lost 2.01%, while the S&P 500 gained 3.96%.
The upcoming earnings release of Shopify will be of great interest to investors. The company is expected to report EPS of $0.21, up 50% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2 billion, up 18.21% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.96 per share and a revenue of $8.51 billion, signifying shifts of +29.73% and +20.51%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Shopify. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained unchanged. Currently, Shopify is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Shopify is at present trading with a Forward P/E ratio of 68.29. This denotes a premium relative to the industry's average Forward P/E of 22.46.
We can additionally observe that SHOP currently boasts a PEG ratio of 2.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 2.17.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Shopify (SHOP) Stock Declines While Market Improves: Some Information for Investors
Shopify (SHOP - Free Report) closed the latest trading day at $64.69, indicating a -1.19% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.23%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 0.34%.
Coming into today, shares of the cloud-based commerce company had gained 11.4% in the past month. In that same time, the Computer and Technology sector lost 2.01%, while the S&P 500 gained 3.96%.
The upcoming earnings release of Shopify will be of great interest to investors. The company is expected to report EPS of $0.21, up 50% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2 billion, up 18.21% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.96 per share and a revenue of $8.51 billion, signifying shifts of +29.73% and +20.51%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Shopify. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained unchanged. Currently, Shopify is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Shopify is at present trading with a Forward P/E ratio of 68.29. This denotes a premium relative to the industry's average Forward P/E of 22.46.
We can additionally observe that SHOP currently boasts a PEG ratio of 2.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 2.17.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.