Shopify (SHOP) Dips More Than Broader Markets: What You Should Know
Shopify (SHOP) closed at $1,177.64 in the latest trading session, marking a -0.95% move from the prior day. This change lagged the S&P 500's daily loss of 0.66%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 1.25%.
Heading into today, shares of the cloud-based commerce company had gained 11.39% over the past month, outpacing the Computer and Technology sector's gain of 3.38% and the S&P 500's gain of 3.42% in that time.
SHOP will be looking to display strength as it nears its next earnings release. On that day, SHOP is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 188.37%. Our most recent consensus estimate is calling for quarterly revenue of $901.05 million, up 78.37% from the year-ago period.
Investors might also notice recent changes to analyst estimates for SHOP. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.98% higher. SHOP is currently a Zacks Rank #3 (Hold).
Investors should also note SHOP's current valuation metrics, including its Forward P/E ratio of 337.83. For comparison, its industry has an average Forward P/E of 30.32, which means SHOP is trading at a premium to the group.
Meanwhile, SHOP's PEG ratio is currently 10.39. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.71 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.
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