Shopify (SHOP) closed the most recent trading day at $408.39, moving -0.09% from the previous trading session. This move lagged the S&P 500’s daily of 0%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.18%.
Coming into today, shares of the cloud-based commerce company had gained 19.87% in the past month. In that same time, the Computer and Technology sector gained 4.19%, while the S&P 500 gained 3.37%.
Wall Street will be looking for positivity from SHOP as it approaches its next earnings report date. On that day, SHOP is projected to report earnings of $0.25 per share, which would represent a year-over-year decline of 3.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $484.22 million, up 40.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.20 per share and revenue of $1.56 billion. These totals would mark changes of -47.37% and +44.99%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SHOP. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 5.82% lower within the past month. SHOP is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note SHOP’s current valuation metrics, including its Forward P/E ratio of 1997.15. This valuation marks a premium compared to its industry’s average Forward P/E of 32.6.
It is also worth noting that SHOP currently has a PEG ratio of 79.89. 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. Internet – Services stocks are, on average, holding a PEG ratio of 2.94 based on yesterday’s closing prices.
The Internet – Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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