Shopify (SHOP) closed at $54 in the latest trading session, marking a -1.04% move from the prior day. This change lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.67%.
Prior to today's trading, shares of the cloud-based commerce company had lost 18.2% over the past month. This has lagged the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.45% in that time.
Shopify will be looking to display strength as it nears its next earnings release. In that report, analysts expect Shopify to post earnings of $0.08 per share. This would mark year-over-year growth of 500%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.64 billion, up 20.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.25 per share and revenue of $6.86 billion. These totals would mark changes of +525% and +22.42%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Shopify. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 15.83% lower. Shopify is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Shopify currently has a Forward P/E ratio of 218.28. This represents a premium compared to its industry's average Forward P/E of 27.49.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many 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