In the latest trading session, Shopify (SHOP) closed at $53.58, marking a +0.94% move from the previous day. This change outpaced the S&P 500's 0.4% gain on the day. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.45%.
Coming into today, shares of the cloud-based commerce company had lost 4.43% in the past month. In that same time, the Computer and Technology sector lost 1.45%, while the S&P 500 lost 1.38%.
Wall Street will be looking for positivity from Shopify as it approaches its next earnings report date. On that day, Shopify is projected to report earnings of $0.06 per share, which would represent year-over-year growth of 400%. Our most recent consensus estimate is calling for quarterly revenue of $1.64 billion, up 20.15% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.34 per share and revenue of $6.86 billion, which would represent changes of +750% and +22.42%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Shopify. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 15.83% lower. Shopify currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Shopify is holding a Forward P/E ratio of 157.27. This represents a premium compared to its industry's average Forward P/E of 27.8.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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.
To follow SHOP in the coming trading sessions, be sure to utilize Zacks.com.
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