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In the latest trading session, Shopify (SHOP) closed at $1,594.09, marking a +1.58% move from the previous day. This move outpaced the S&P 500's daily gain of 0.2%.
Prior to today's trading, shares of the cloud-based commerce company had gained 4.59% over the past month. This has outpaced the Computer and Technology sector's gain of 1.57% and the S&P 500's gain of 3.28% in that time.
Investors will be hoping for strength from SHOP as it approaches its next earnings release, which is expected to be July 28, 2021. On that day, SHOP is projected to report earnings of $0.98 per share, which would represent a year-over-year decline of 6.67%. Our most recent consensus estimate is calling for quarterly revenue of $1.04 billion, up 45.69% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.43 per share and revenue of $4.4 billion. These totals would mark changes of +11.31% and +50.36%, respectively, from last year.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 1.04% higher within the past month. SHOP is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note SHOP's current valuation metrics, including its Forward P/E ratio of 354.39. Its industry sports an average Forward P/E of 30.27, so we one might conclude that SHOP is trading at a premium comparatively.
Investors should also note that SHOP has a PEG ratio of 14.18 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Services stocks are, on average, holding a PEG ratio of 2.65 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 203, putting it in the bottom 21% 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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