Shopify (SHOP) closed at $957.33 in the latest trading session, marking a +0.47% move from the prior day. This change lagged the S&P 500's 0.58% gain on the day. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.24%.
Prior to today's trading, shares of the cloud-based commerce company had gained 4.55% over the past month. This has lagged the Computer and Technology sector's gain of 7.08% and the S&P 500's gain of 5.34% in that time.
SHOP will be looking to display strength as it nears its next earnings release, which is expected to be July 29, 2020. The company is expected to report EPS of -$0.01, down 107.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $501.06 million, up 38.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.53 per share and revenue of $2.17 billion. These totals would mark changes of +76.67% and +37.28%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for SHOP. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 3.24% higher. SHOP currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that SHOP has a Forward P/E ratio of 1788.34 right now. For comparison, its industry has an average Forward P/E of 33.96, which means SHOP is trading at a premium to the group.
Meanwhile, SHOP's PEG ratio is currently 52.64. 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. The Internet - Services industry currently had an average PEG ratio of 2.59 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Shopify Inc. (SHOP) : Free Stock Analysis Report
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