In the latest close session, Shopify (SHOP) was down 1.54% at $163.87. The stock's change was less than the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 0.08%.
Shares of the cloud-based commerce company have appreciated by 17.04% over the course of the past month, outperforming the Computer and Technology sector's gain of 7.19%, and the S&P 500's gain of 4.03%.
The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.34, marking a 5.56% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.75 billion, indicating a 27.3% upward movement from the same quarter last year.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $1.45 per share and revenue of $11.25 billion. These results would represent year-over-year changes of +11.54% and +26.66%, respectively.
Investors might also notice recent changes to analyst estimates for Shopify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.21% higher. Right now, Shopify possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 114.58 right now. This represents a premium compared to its industry average Forward P/E of 24.61.
We can also see that SHOP currently has a PEG ratio of 5.82. 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 industry currently had an average PEG ratio of 1.66 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Shopify Inc. (SHOP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
