Shopify (SHOP) Registers a Bigger Fall Than the Market: Important Facts to Note
Shopify (SHOP) ended the recent trading session at $78.72, demonstrating a -1.09% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq added 0.17%.
Heading into today, shares of the cloud-based commerce company had gained 6.08% over the past month, lagging the Computer and Technology sector's gain of 6.81% and outpacing the S&P 500's gain of 5.34% in that time.
The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.16, marking a 1500% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.83 billion, up 21.24% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $0.94 per share and a revenue of $8.48 billion, demonstrating changes of +27.03% and +20.07%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.49% lower within the past month. Shopify currently has a Zacks Rank of #3 (Hold).
Investors should also note Shopify's current valuation metrics, including its Forward P/E ratio of 84.28. This valuation marks a premium compared to its industry's average Forward P/E of 25.97.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
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 Report
