We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Shopify (SHOP) Outpaced the Stock Market Today
Read MoreHide Full Article
The latest trading session saw Shopify (SHOP - Free Report) ending at $79.10, denoting a +0.83% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.08%.
The cloud-based commerce company's shares have seen an increase of 10.09% over the last month, surpassing the Computer and Technology sector's gain of 1.03% and the S&P 500's gain of 1.21%.
The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. The company is expected to report EPS of $0.27, up 12.5% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.11 billion, indicating a 22.89% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.12 per share and revenue of $8.62 billion. These totals would mark changes of +51.35% and +22.15%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shopify. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained steady. Shopify is holding a Zacks Rank of #2 (Buy) right now.
From a valuation perspective, Shopify is currently exchanging hands at a Forward P/E ratio of 70.29. This denotes a premium relative to the industry's average Forward P/E of 28.54.
Investors should also note that SHOP has a PEG ratio of 1.79 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.79.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 37% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Shopify (SHOP) Outpaced the Stock Market Today
The latest trading session saw Shopify (SHOP - Free Report) ending at $79.10, denoting a +0.83% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.08%.
The cloud-based commerce company's shares have seen an increase of 10.09% over the last month, surpassing the Computer and Technology sector's gain of 1.03% and the S&P 500's gain of 1.21%.
The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. The company is expected to report EPS of $0.27, up 12.5% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.11 billion, indicating a 22.89% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.12 per share and revenue of $8.62 billion. These totals would mark changes of +51.35% and +22.15%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shopify. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained steady. Shopify is holding a Zacks Rank of #2 (Buy) right now.
From a valuation perspective, Shopify is currently exchanging hands at a Forward P/E ratio of 70.29. This denotes a premium relative to the industry's average Forward P/E of 28.54.
Investors should also note that SHOP has a PEG ratio of 1.79 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.79.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 37% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.