Shopify (SHOP) Stock Dips While Market Gains: Key Facts
Shopify (SHOP) closed the most recent trading day at $77.17, moving -1.84% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.11% for the day. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq depreciated by 0.12%.
The cloud-based commerce company's shares have seen an increase of 4.05% over the last month, surpassing the Computer and Technology sector's gain of 3.59% and the S&P 500's gain of 3.55%.
Analysts and investors alike will be keeping a close eye on the performance of Shopify in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.16, showcasing a 1500% upward movement from the corresponding quarter of the prior 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 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.
Any recent changes to analyst estimates for Shopify should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Shopify possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 83.25 right now. 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. Currently, this industry holds a Zacks Industry Rank of 62, positioning it in the top 25% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Shopify Inc. (SHOP) : Free Stock Analysis Report
