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Shopify (SHOP) Outperforms Broader Market: What You Need to Know
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In the latest market close, Shopify (SHOP - Free Report) reached $80.75, with a +1.88% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.6%.
Coming into today, shares of the cloud-based commerce company had gained 9.28% in the past month. In that same time, the Computer and Technology sector gained 0.91%, while the S&P 500 gained 1.71%.
The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.27, reflecting a 12.5% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.11 billion, indicating a 22.89% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.12 per share and a revenue of $8.62 billion, signifying shifts of +51.35% and +22.15%, respectively, from the last 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Shopify currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Shopify is currently exchanging hands at a Forward P/E ratio of 71.01. This valuation marks a premium compared to its industry's average Forward P/E of 30.63.
Investors should also note that SHOP has a PEG ratio of 1.81 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.9.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 137, this industry ranks in the bottom 46% of all industries, numbering over 250.
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.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.
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Shopify (SHOP) Outperforms Broader Market: What You Need to Know
In the latest market close, Shopify (SHOP - Free Report) reached $80.75, with a +1.88% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.6%.
Coming into today, shares of the cloud-based commerce company had gained 9.28% in the past month. In that same time, the Computer and Technology sector gained 0.91%, while the S&P 500 gained 1.71%.
The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.27, reflecting a 12.5% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.11 billion, indicating a 22.89% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.12 per share and a revenue of $8.62 billion, signifying shifts of +51.35% and +22.15%, respectively, from the last 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Shopify currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Shopify is currently exchanging hands at a Forward P/E ratio of 71.01. This valuation marks a premium compared to its industry's average Forward P/E of 30.63.
Investors should also note that SHOP has a PEG ratio of 1.81 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.9.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 137, this industry ranks in the bottom 46% of all industries, numbering over 250.
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.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.