Shopify (SHOP) closed at $313.26 in the latest trading session, marking a -1.74% move from the prior day. This change lagged the S&P 500's 0.01% loss on the day. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Prior to today's trading, shares of the cloud-based commerce company had lost 17.94% over the past month. This has lagged the Computer and Technology sector's gain of 2.92% and the S&P 500's gain of 3.23% in that time.
SHOP will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.11, up 175% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $384.07 million, up 42.22% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.62 per share and revenue of $1.54 billion. These totals would mark changes of +63.16% and +43.46%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SHOP. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, the Zacks Consensus EPS estimate has moved 0.17% higher. SHOP is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, SHOP currently has a Forward P/E ratio of 513.44. This represents a premium compared to its industry's average Forward P/E of 26.15.
Meanwhile, SHOP's PEG ratio is currently 21.69. 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 2.64 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Shopify Inc. (SHOP) : Free Stock Analysis Report
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