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.
Shopify (SHOP) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Shopify (SHOP - Free Report) closed the most recent trading day at $173.65, moving +0.06% from the previous trading session. This move lagged the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.74%.
Coming into today, shares of the cloud-based commerce company had gained 20.19% in the past month. In that same time, the Computer and Technology sector gained 9.76%, while the S&P 500 gained 7.71%.
SHOP will be looking to display strength as it nears its next earnings release, which is expected to be February 12, 2019. In that report, analysts expect SHOP to post earnings of $0.21 per share. This would mark year-over-year growth of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $327.13 million, up 46.82% from the year-ago period.
Investors might also notice 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. Within the past 30 days, our consensus EPS projection has moved 1.56% higher. SHOP is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that SHOP has a Forward P/E ratio of 255.88 right now. This represents a premium compared to its industry's average Forward P/E of 26.88.
Meanwhile, SHOP's PEG ratio is currently 10.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 2.21 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Shopify (SHOP) Gains But Lags Market: What You Should Know
Shopify (SHOP - Free Report) closed the most recent trading day at $173.65, moving +0.06% from the previous trading session. This move lagged the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.74%.
Coming into today, shares of the cloud-based commerce company had gained 20.19% in the past month. In that same time, the Computer and Technology sector gained 9.76%, while the S&P 500 gained 7.71%.
SHOP will be looking to display strength as it nears its next earnings release, which is expected to be February 12, 2019. In that report, analysts expect SHOP to post earnings of $0.21 per share. This would mark year-over-year growth of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $327.13 million, up 46.82% from the year-ago period.
Investors might also notice 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. Within the past 30 days, our consensus EPS projection has moved 1.56% higher. SHOP is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that SHOP has a Forward P/E ratio of 255.88 right now. This represents a premium compared to its industry's average Forward P/E of 26.88.
Meanwhile, SHOP's PEG ratio is currently 10.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 2.21 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.