In the latest trading session, Shopify (SHOP) closed at $337.88, marking a -0.13% move from the previous day. This change was narrower than the S&P 500's 0.31% loss on the day. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 0.28%.
Heading into today, shares of the cloud-based commerce company had lost 3.63% over the past month, lagging the Computer and Technology sector's gain of 2.54% and the S&P 500's gain of 2.92% in that time.
Wall Street will be looking for positivity from SHOP as it approaches its next earnings report date. In that report, analysts expect SHOP to post earnings of -$0.28 per share. This would mark a year-over-year decline of 26.77%. Our most recent consensus estimate is calling for quarterly revenue of $384.07 million, up 42.22% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.82 per share and revenue of $1.54 billion. These totals would mark changes of -33.65% and +43.46%, respectively, from last year.
Any recent changes to analyst estimates for SHOP should also be noted by investors. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.61% lower within the past month. SHOP is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SHOP is currently trading at a Forward P/E ratio of 544.82. Its industry sports an average Forward P/E of 26.17, so we one might conclude that SHOP is trading at a premium comparatively.
Investors should also note that SHOP has a PEG ratio of 23.02 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.55 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 164, which puts it in the bottom 36% 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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