Advertisement
Singapore markets closed
  • Straits Times Index

    3,447.56
    -23.60 (-0.68%)
     
  • Nikkei

    40,063.79
    -62.56 (-0.16%)
     
  • Hang Seng

    17,417.68
    -360.73 (-2.03%)
     
  • FTSE 100

    8,155.72
    -49.17 (-0.60%)
     
  • Bitcoin USD

    66,693.48
    +1,178.53 (+1.80%)
     
  • CMC Crypto 200

    1,377.89
    +46.99 (+3.53%)
     
  • S&P 500

    5,505.00
    -39.59 (-0.71%)
     
  • Dow

    40,287.53
    -377.49 (-0.93%)
     
  • Nasdaq

    17,726.94
    -144.28 (-0.81%)
     
  • Gold

    2,402.80
    -53.60 (-2.18%)
     
  • Crude Oil

    80.25
    -2.57 (-3.10%)
     
  • 10-Yr Bond

    4.2390
    +0.0500 (+1.19%)
     
  • FTSE Bursa Malaysia

    1,636.55
    +2.74 (+0.17%)
     
  • Jakarta Composite Index

    7,294.50
    -26.58 (-0.36%)
     
  • PSE Index

    6,791.69
    +86.68 (+1.29%)
     

Shopify (SHOP) Dips More Than Broader Market: What You Should Know

Shopify (SHOP) closed at $63.88 in the latest trading session, marking a -0.58% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.25%. On the other hand, the Dow registered a gain of 0.77%, and the technology-centric Nasdaq decreased by 0.79%.

The cloud-based commerce company's shares have seen an increase of 9.45% over the last month, surpassing the Computer and Technology sector's gain of 8.85% and the S&P 500's gain of 3.59%.

Market participants will be closely following the financial results of Shopify in its upcoming release. It is anticipated that the company will report an EPS of $0.21, marking a 50% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2 billion, indicating a 18.15% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.98 per share and a revenue of $8.51 billion, signifying shifts of +32.43% and +20.48%, respectively, from the last year.

ADVERTISEMENT

It is also important to note the recent changes to analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.59% higher. 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 65.4. This valuation marks a premium compared to its industry's average Forward P/E of 22.56.

One should further note that SHOP currently holds a PEG ratio of 2.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Services industry stood at 1.95 at the close of the market yesterday.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 149, this industry ranks in the bottom 41% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Shopify Inc. (SHOP) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research