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Shopify (SHOP) Moves 8.6% Higher: Will This Strength Last?
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Shopify (SHOP - Free Report) shares rallied 8.6% in the last trading session to close at $69.72. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.5% loss over the past four weeks.
Shopify is benefiting from strong growth in its merchant base. New merchant-friendly tools like Bill Pay, Tax Platform, Collective and the Marketplace Connect app are helping it to win new merchants regularly.
This cloud-based commerce company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $2 billion, up 18.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Shopify, the consensus EPS estimate for the quarter has been revised 2.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SHOP going forward to see if this recent jump can turn into more strength down the road.
Shopify belongs to the Zacks Internet - Services industry. Another stock from the same industry, The Trade Desk (TTD - Free Report) , closed the last trading session 0.9% higher at $100.95. Over the past month, TTD has returned 2.5%.
The Trade Desk's consensus EPS estimate for the upcoming report has changed +3.4% over the past month to $0.36. Compared to the company's year-ago EPS, this represents a change of +28.6%. The Trade Desk currently boasts a Zacks Rank of #3 (Hold).
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Shopify (SHOP) Moves 8.6% Higher: Will This Strength Last?
Shopify (SHOP - Free Report) shares rallied 8.6% in the last trading session to close at $69.72. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.5% loss over the past four weeks.
Shopify is benefiting from strong growth in its merchant base. New merchant-friendly tools like Bill Pay, Tax Platform, Collective and the Marketplace Connect app are helping it to win new merchants regularly.
This cloud-based commerce company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $2 billion, up 18.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Shopify, the consensus EPS estimate for the quarter has been revised 2.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SHOP going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Shopify belongs to the Zacks Internet - Services industry. Another stock from the same industry, The Trade Desk (TTD - Free Report) , closed the last trading session 0.9% higher at $100.95. Over the past month, TTD has returned 2.5%.
The Trade Desk's consensus EPS estimate for the upcoming report has changed +3.4% over the past month to $0.36. Compared to the company's year-ago EPS, this represents a change of +28.6%. The Trade Desk currently boasts a Zacks Rank of #3 (Hold).