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Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know
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The most recent trading session ended with Shopify (SHOP - Free Report) standing at $62.69, reflecting a -0.74% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 1.08% for the day. At the same time, the Dow added 0.32%, and the tech-heavy Nasdaq gained 1.58%.
The cloud-based commerce company's shares have seen a decrease of 2.88% over the last month, surpassing the Computer and Technology sector's loss of 4.77% and falling behind the S&P 500's gain of 0.43%.
The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. The company is slated to reveal its earnings on August 7, 2024. The company is expected to report EPS of $0.20, up 42.86% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2 billion, indicating a 18.14% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.99 per share and a revenue of $8.51 billion, signifying shifts of +33.78% and +20.55%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Shopify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.51% higher. Shopify currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Shopify is holding a Forward P/E ratio of 63.99. This indicates a premium in contrast to its industry's Forward P/E of 23.35.
We can also see that SHOP currently has a PEG ratio of 2.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services was holding an average PEG ratio of 2.12 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know
The most recent trading session ended with Shopify (SHOP - Free Report) standing at $62.69, reflecting a -0.74% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 1.08% for the day. At the same time, the Dow added 0.32%, and the tech-heavy Nasdaq gained 1.58%.
The cloud-based commerce company's shares have seen a decrease of 2.88% over the last month, surpassing the Computer and Technology sector's loss of 4.77% and falling behind the S&P 500's gain of 0.43%.
The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. The company is slated to reveal its earnings on August 7, 2024. The company is expected to report EPS of $0.20, up 42.86% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2 billion, indicating a 18.14% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.99 per share and a revenue of $8.51 billion, signifying shifts of +33.78% and +20.55%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Shopify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.51% higher. Shopify currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Shopify is holding a Forward P/E ratio of 63.99. This indicates a premium in contrast to its industry's Forward P/E of 23.35.
We can also see that SHOP currently has a PEG ratio of 2.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services was holding an average PEG ratio of 2.12 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.