Yahoo Finance Shopify (SHOP) Outpaces Stock Market Gains: What You Should Know
Shopify (SHOP) closed at $57.94 in the latest trading session, marking a +1.31% move from the prior day. This move outpaced the S&P 500's daily gain of 0.99%.
Heading into today, shares of the cloud-based commerce company had gained 23.6% over the past month, outpacing the Computer and Technology sector's gain of 8.96% and the S&P 500's gain of 0.42% in that time.
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, up 100% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.62 billion, up 24.92% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.06 per share and revenue of $6.74 billion. These results would represent year-over-year changes of +50% and +20.32%, 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. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Shopify is currently a Zacks Rank #3 (Hold).
Digging into valuation, Shopify currently has a Forward P/E ratio of 963.2. This valuation marks a premium compared to its industry's average Forward P/E of 22.82.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% 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.
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
