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Shopify (SHOP) Stock Declines While Market Improves: Some Information for Investors
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The latest trading session saw Shopify (SHOP - Free Report) ending at $64.21, denoting a -1.05% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.28%. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 0.4%.
The cloud-based commerce company's stock has dropped by 4.09% in the past month, falling short of the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78%.
The upcoming earnings release of Shopify will be of great interest to investors. The company is predicted to post an EPS of $0.21, indicating a 50% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2 billion, showing a 18.17% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.99 per share and revenue of $8.5 billion, indicating changes of +33.78% and +20.45%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.51% higher. As of now, Shopify holds a Zacks Rank of #2 (Buy).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 65.43. This indicates a premium in contrast to its industry's Forward P/E of 23.03.
It is also worth noting that SHOP currently has a PEG ratio of 2.02. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 1.95 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 41% 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.
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) Stock Declines While Market Improves: Some Information for Investors
The latest trading session saw Shopify (SHOP - Free Report) ending at $64.21, denoting a -1.05% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.28%. Meanwhile, the Dow experienced a rise of 0.53%, and the technology-dominated Nasdaq saw an increase of 0.4%.
The cloud-based commerce company's stock has dropped by 4.09% in the past month, falling short of the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78%.
The upcoming earnings release of Shopify will be of great interest to investors. The company is predicted to post an EPS of $0.21, indicating a 50% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2 billion, showing a 18.17% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.99 per share and revenue of $8.5 billion, indicating changes of +33.78% and +20.45%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.51% higher. As of now, Shopify holds a Zacks Rank of #2 (Buy).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 65.43. This indicates a premium in contrast to its industry's Forward P/E of 23.03.
It is also worth noting that SHOP currently has a PEG ratio of 2.02. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 1.95 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 41% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.