The most recent trading session ended with Shopify (SHOP) standing at $83.71, reflecting a -1.09% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 1.81%. At the same time, the Dow added 1.56%, and the tech-heavy Nasdaq gained 2.06%.
The cloud-based commerce company's shares have seen a decrease of 6.58% over the last month, surpassing the Computer and Technology sector's loss of 7.27% and falling behind the S&P 500's loss of 6.14%.
The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. In that report, analysts expect Shopify to post earnings of $0.26 per share. This would mark year-over-year growth of 30%. Alongside, our most recent consensus estimate is anticipating revenue of $2.33 billion, indicating a 25.28% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.49 per share and a revenue of $10.86 billion, indicating changes of +14.62% and +22.29%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Shopify. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Shopify possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Shopify is presently trading at a Forward P/E ratio of 56.98. This expresses a premium compared to the average Forward P/E of 18.09 of its industry.
It is also worth noting that SHOP currently has a PEG ratio of 2.48. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 135, positioning it in the bottom 46% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Shopify Inc. (SHOP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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