Shopify (SHOP) Stock Moves -1.29%: What You Should Know
Shopify (SHOP) closed the most recent trading day at $30.55, moving -1.29% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.71%. Meanwhile, the Dow lost 1.7%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Coming into today, shares of the cloud-based commerce company had lost 4.68% in the past month. In that same time, the Computer and Technology sector lost 12.12%, while the S&P 500 lost 8.68%.
Investors will be hoping for strength from Shopify as it approaches its next earnings release. In that report, analysts expect Shopify to post earnings of $0 per share. This would mark a year-over-year decline of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.34 billion, up 19.64% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.07 per share and revenue of $5.49 billion, which would represent changes of -89.06% and +19.14%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Shopify. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 1.47% higher within the past month. Shopify is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Shopify is holding a Forward P/E ratio of 444.49. This represents a premium compared to its industry's average Forward P/E of 20.9.
It is also worth noting that SHOP currently has a PEG ratio of 19.32. 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 1.65 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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