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Zacks Investment Ideas feature highlights: Shopify and Cava Group
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For Immediate Release
Chicago, IL – November 13, 2024 – Today, Zacks Investment Ideas feature highlights Shopify (SHOP - Free Report) and Cava Group (CAVA - Free Report) .
Key Earnings Movers: Shopify Soars on Double-Beat Q3 Report
The third-quarter earnings season is winding down, but that doesn’t mean the fireworks are over.
We’ve now received Q3 results from more than 90% of S&P 500 index members. Total earnings for these companies that have reported are up 7.1% from the same period last year on 5.5% higher revenues. On a ‘blended’ basis that includes the still-to-come companies, S&P 500 earnings are expected to rise 7.4% from the year-ago period on 5.6% higher revenues.
The outcome speaks to a resilient corporate backdrop, as companies continue to grapple with economic uncertainties and a higher interest-rate environment. It wasn’t too long ago that recession fears were swirling around Wall Street, but those reservations have mainly dissipated amid former President Trump’s recent victory and record highs in the stock market.
Remember, stocks are one of the best leading indicators of the economy. Corporate earnings growth is expected to accelerate in the coming quarters at a double-digit pace following the modest growth in the third quarter.
Shopify Highlights Tuesday’s Earnings Movers
One company stood out on Tuesday morning, as its individual stock spiked after delivering a beat on both the top and bottom lines. E-commerce platform provider Shopify doubled its net income during the third quarter to $344 million, topping estimates of $332 million. The company has exceeded the earnings mark in eight consecutive quarters.
Revenues jumped 26% from the same period last year to $2.16 billion, ahead of the $2.11 billion Zacks Consensus Estimate. Gross merchandise volume from merchant transactions surged 24% to $69.71 billion, also ahead of estimates.
Shopify, which provides a cloud-based, multi-channel platform that assists businesses in selling products and services, has been taking advantage of the artificial intelligence theme by rolling out several related features. Shopify Dashboard, which is available in more than 20 languages, enables merchants to manage products and inventory, process orders and payments, build customer relationships, and leverage data analytics.
Adding to the bullish theme, Shopify guided above expectations for the current quarter. Management stated that they expect “revenues to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.” The Q4 Zacks Consensus Estimate for Shopify revenues calls for 22.2% growth at the time of this writing.
Shares of Shopify, which are currently a Zacks Rank #2 (Buy), had been lagging the market this year heading into this morning’s announcement. But the stock was beginning to show signs of relative strength over the last few months, rising above key technical levels. The prior underperformance is transforming in swift fashion as SHOP stock surges more than 20% on its Q3 results. Shares are now up more than 40% this year.
Leading Mediterranean Restaurant Chain to Report After the Bell
Popular, fast-casual restaurant brand Cava Group is slated to report its Q3 results after the close on Tuesday. The company is expected to post a quarterly profit of $0.11/share, which would mark an 83.3% improvement from the same period last year. Estimates for the quarter have remained steady over the past 60 days.
Third-quarter sales are projected to come in at $235.1 million, hinting at a nearly 34% surge. A Zacks Rank #2 (Buy) stock, CAVA hasn’t missed on the earnings (or sales) mark since last year’s IPO. The company boasts an impressive 257.7% average earnings surprise over the last four quarters.
CAVA stock has been one of the big market winners this year as shares have surged more than 240%.
Our proprietary Zacks Earnings ESP indicator does not conclusively predict another beat for CAVA. Keep in mind that stocks can be extremely volatile surrounding earnings announcements.
Disclosure: Shopify is a current holding in the Zacks Headline Trader portfolio.
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Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Shopify and Cava Group
For Immediate Release
Chicago, IL – November 13, 2024 – Today, Zacks Investment Ideas feature highlights Shopify (SHOP - Free Report) and Cava Group (CAVA - Free Report) .
Key Earnings Movers: Shopify Soars on Double-Beat Q3 Report
The third-quarter earnings season is winding down, but that doesn’t mean the fireworks are over.
We’ve now received Q3 results from more than 90% of S&P 500 index members. Total earnings for these companies that have reported are up 7.1% from the same period last year on 5.5% higher revenues. On a ‘blended’ basis that includes the still-to-come companies, S&P 500 earnings are expected to rise 7.4% from the year-ago period on 5.6% higher revenues.
The outcome speaks to a resilient corporate backdrop, as companies continue to grapple with economic uncertainties and a higher interest-rate environment. It wasn’t too long ago that recession fears were swirling around Wall Street, but those reservations have mainly dissipated amid former President Trump’s recent victory and record highs in the stock market.
Remember, stocks are one of the best leading indicators of the economy. Corporate earnings growth is expected to accelerate in the coming quarters at a double-digit pace following the modest growth in the third quarter.
Shopify Highlights Tuesday’s Earnings Movers
One company stood out on Tuesday morning, as its individual stock spiked after delivering a beat on both the top and bottom lines. E-commerce platform provider Shopify doubled its net income during the third quarter to $344 million, topping estimates of $332 million. The company has exceeded the earnings mark in eight consecutive quarters.
Revenues jumped 26% from the same period last year to $2.16 billion, ahead of the $2.11 billion Zacks Consensus Estimate. Gross merchandise volume from merchant transactions surged 24% to $69.71 billion, also ahead of estimates.
Shopify, which provides a cloud-based, multi-channel platform that assists businesses in selling products and services, has been taking advantage of the artificial intelligence theme by rolling out several related features. Shopify Dashboard, which is available in more than 20 languages, enables merchants to manage products and inventory, process orders and payments, build customer relationships, and leverage data analytics.
Adding to the bullish theme, Shopify guided above expectations for the current quarter. Management stated that they expect “revenues to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.” The Q4 Zacks Consensus Estimate for Shopify revenues calls for 22.2% growth at the time of this writing.
Shares of Shopify, which are currently a Zacks Rank #2 (Buy), had been lagging the market this year heading into this morning’s announcement. But the stock was beginning to show signs of relative strength over the last few months, rising above key technical levels. The prior underperformance is transforming in swift fashion as SHOP stock surges more than 20% on its Q3 results. Shares are now up more than 40% this year.
Leading Mediterranean Restaurant Chain to Report After the Bell
Popular, fast-casual restaurant brand Cava Group is slated to report its Q3 results after the close on Tuesday. The company is expected to post a quarterly profit of $0.11/share, which would mark an 83.3% improvement from the same period last year. Estimates for the quarter have remained steady over the past 60 days.
Third-quarter sales are projected to come in at $235.1 million, hinting at a nearly 34% surge. A Zacks Rank #2 (Buy) stock, CAVA hasn’t missed on the earnings (or sales) mark since last year’s IPO. The company boasts an impressive 257.7% average earnings surprise over the last four quarters.
CAVA stock has been one of the big market winners this year as shares have surged more than 240%.
Our proprietary Zacks Earnings ESP indicator does not conclusively predict another beat for CAVA. Keep in mind that stocks can be extremely volatile surrounding earnings announcements.
Disclosure: Shopify is a current holding in the Zacks Headline Trader portfolio.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.