Shopify (SHOP) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest market close, Shopify (SHOP) reached $78.42, with a -0.33% movement compared to the previous day. This change lagged the S&P 500's 0.29% loss on the day. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.3%.
Prior to today's trading, shares of the cloud-based commerce company had lost 2.47% over the past month. This has lagged the Computer and Technology sector's gain of 3.61% and the S&P 500's gain of 4.42% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Shopify in its upcoming earnings disclosure. 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. In the meantime, our current consensus estimate forecasts the revenue to be $1.83 billion, indicating a 21.24% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.94 per share and a revenue of $8.48 billion, signifying shifts of +27.03% and +20.07%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shopify. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 15.57% lower. Currently, Shopify is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Shopify currently has a Forward P/E ratio of 83.31. This represents a premium compared to its industry's average Forward P/E of 25.36.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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
