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Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know
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Shopify (SHOP - Free Report) ended the recent trading session at $66.13, demonstrating a -1.8% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.07%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.14%.
Shares of the cloud-based commerce company witnessed a gain of 6.87% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.61% and outperforming the S&P 500's gain of 4.34%.
The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. In that report, analysts expect Shopify to post earnings of $0.21 per share. This would mark year-over-year growth of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $2 billion, up 18.15% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.99 per share and revenue of $8.51 billion, indicating changes of +33.78% and +20.48%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Shopify should also be noted by investors. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.51% higher. Shopify is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Shopify is at present trading with a Forward P/E ratio of 68.1. This represents a premium compared to its industry's average Forward P/E of 23.56.
It's also important to note that SHOP currently trades at a PEG ratio of 2.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SHOP's industry had an average PEG ratio of 2.13 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 149, positioning it in the bottom 41% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know
Shopify (SHOP - Free Report) ended the recent trading session at $66.13, demonstrating a -1.8% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.07%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.14%.
Shares of the cloud-based commerce company witnessed a gain of 6.87% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.61% and outperforming the S&P 500's gain of 4.34%.
The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. In that report, analysts expect Shopify to post earnings of $0.21 per share. This would mark year-over-year growth of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $2 billion, up 18.15% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.99 per share and revenue of $8.51 billion, indicating changes of +33.78% and +20.48%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Shopify should also be noted by investors. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.51% higher. Shopify is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Shopify is at present trading with a Forward P/E ratio of 68.1. This represents a premium compared to its industry's average Forward P/E of 23.56.
It's also important to note that SHOP currently trades at a PEG ratio of 2.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SHOP's industry had an average PEG ratio of 2.13 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 149, positioning it in the bottom 41% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.