Yahoo Finance Shopify (SHOP) Outpaces Stock Market Gains: What You Should Know
Shopify (SHOP) closed at $45.07 in the latest trading session, marking a +0.2% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.17%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.
Coming into today, shares of the cloud-based commerce company had gained 10.38% in the past month. In that same time, the Computer and Technology sector gained 8.4%, while the S&P 500 gained 0.25%.
Wall Street will be looking for positivity from Shopify as it approaches its next earnings report date. The company is expected to report EPS of -$0.04, down 300% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.43 billion, up 18.69% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.06 per share and revenue of $6.66 billion. These results would represent year-over-year changes of +50% and +19%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.37% higher. Shopify is currently a Zacks Rank #3 (Hold).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 733.88. For comparison, its industry has an average Forward P/E of 27.88, which means Shopify is trading at a premium to the group.
Also, we should mention that SHOP has a PEG ratio of 55.18. 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 was holding an average PEG ratio of 1.46 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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Shopify Inc. (SHOP) : Free Stock Analysis Report
