Shopify (SHOP) closed the most recent trading day at $167.93, moving +2.1% from the previous trading session. This change outpaced the S&P 500's 0.16% gain on the day. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq appreciated by 0.26%.
The cloud-based commerce company's stock has climbed by 0.18% in the past month, exceeding the Computer and Technology sector's loss of 0.85% and lagging the S&P 500's gain of 1.89%.
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 $0.5 per share. This would mark year-over-year growth of 13.64%. Alongside, our most recent consensus estimate is anticipating revenue of $3.58 billion, indicating a 27.33% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.45 per share and revenue of $11.46 billion, indicating changes of +11.54% and 0%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Shopify should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.4% decrease. As of now, Shopify holds a Zacks Rank of #4 (Sell).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 93.19. This expresses a premium compared to the average Forward P/E of 17.85 of its industry.
It's also important to note that SHOP currently trades at a PEG ratio of 3.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. SHOP's industry had an average PEG ratio of 1.74 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 51, positioning it in the top 21% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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Shopify Inc. (SHOP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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