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Shopify (SHOP) closed the latest trading day at $107.53, indicating a +1.13% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.16%.
Shares of the cloud-based commerce company witnessed a loss of 6.26% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.86% and the S&P 500's loss of 2.36%.
The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.44, marking a 29.41% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.72 billion, up 27.03% from the year-ago period.
Any recent changes to analyst estimates for Shopify should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% decrease. Shopify is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Shopify is holding a Forward P/E ratio of 71.81. This represents a premium compared to its industry's average Forward P/E of 22.64.
Also, we should mention that SHOP has a PEG ratio of 1.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.45 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% of all 250+ industries.
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.