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Shopify (SHOP) Stock Moves -0.89%: What You Should Know

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Shopify (SHOP - Free Report) closed at $133.19 in the latest trading session, marking a -0.89% move from the prior day. This change was narrower than the S&P 500's 1.54% loss on the day. Meanwhile, the Dow lost 1.49%, and the Nasdaq, a tech-heavy index, lost 2.17%.

Coming into today, shares of the cloud-based commerce company had gained 0.03% in the past month. In that same time, the Computer and Technology sector lost 4.64%, while the S&P 500 lost 6.77%.

Investors will be hoping for strength from SHOP as it approaches its next earnings release, which is expected to be February 21, 2019. In that report, analysts expect SHOP to post earnings of $0.20 per share. This would mark year-over-year growth of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $327.13 million, up 46.82% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.31 per share and revenue of $1.05 billion, which would represent changes of +93.75% and +56.57%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for SHOP. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SHOP is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, SHOP is currently trading at a Forward P/E ratio of 432.64. This represents a premium compared to its industry's average Forward P/E of 25.86.

It is also worth noting that SHOP currently has a PEG ratio of 17.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 2.02 based on yesterday's closing prices.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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