We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shopify (SHOP) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Read MoreHide Full Article
In the latest market close, Shopify (SHOP - Free Report) reached $81.62, with a -1.26% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.18%.
Heading into today, shares of the cloud-based commerce company had gained 3.18% over the past month, lagging the Computer and Technology sector's gain of 3.5% and outpacing the S&P 500's gain of 2.76% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Shopify in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.27, marking a 12.5% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.11 billion, up 22.9% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.12 per share and revenue of $8.62 billion, which would represent changes of +51.35% and +22.15%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Shopify. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Shopify is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Shopify currently has a Forward P/E ratio of 74.06. This denotes a premium relative to the industry's average Forward P/E of 37.76.
We can also see that SHOP currently has a PEG ratio of 1.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 2.34.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 29% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Shopify (SHOP) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest market close, Shopify (SHOP - Free Report) reached $81.62, with a -1.26% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.18%.
Heading into today, shares of the cloud-based commerce company had gained 3.18% over the past month, lagging the Computer and Technology sector's gain of 3.5% and outpacing the S&P 500's gain of 2.76% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Shopify in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.27, marking a 12.5% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.11 billion, up 22.9% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.12 per share and revenue of $8.62 billion, which would represent changes of +51.35% and +22.15%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Shopify. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Shopify is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Shopify currently has a Forward P/E ratio of 74.06. This denotes a premium relative to the industry's average Forward P/E of 37.76.
We can also see that SHOP currently has a PEG ratio of 1.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 2.34.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 29% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.