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Shopify (SHOP) Stock Sinks As Market Gains: Here's Why
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Shopify (SHOP - Free Report) closed at $59.87 in the latest trading session, marking a -0.12% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq gained 0.07%.
The cloud-based commerce company's stock has dropped by 9.25% in the past month, falling short of the Computer and Technology sector's loss of 4.62% and the S&P 500's loss of 0.21%.
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's earnings per share (EPS) are projected to be $0.20, reflecting a 42.86% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2 billion, up 18.32% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.99 per share and revenue of $8.52 billion, which would represent changes of +33.78% and +20.69%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Shopify. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.92% higher. Right now, Shopify possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 60.58 right now. This valuation marks a premium compared to its industry's average Forward P/E of 21.92.
Also, we should mention that SHOP has a PEG ratio of 2.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 2.16 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 101, finds itself in the top 41% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.
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Shopify (SHOP) Stock Sinks As Market Gains: Here's Why
Shopify (SHOP - Free Report) closed at $59.87 in the latest trading session, marking a -0.12% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq gained 0.07%.
The cloud-based commerce company's stock has dropped by 9.25% in the past month, falling short of the Computer and Technology sector's loss of 4.62% and the S&P 500's loss of 0.21%.
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's earnings per share (EPS) are projected to be $0.20, reflecting a 42.86% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2 billion, up 18.32% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.99 per share and revenue of $8.52 billion, which would represent changes of +33.78% and +20.69%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Shopify. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.92% higher. Right now, Shopify possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 60.58 right now. This valuation marks a premium compared to its industry's average Forward P/E of 21.92.
Also, we should mention that SHOP has a PEG ratio of 2.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 2.16 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 101, finds itself in the top 41% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.