Yahoo Finance Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Shopify (SHOP) closed at $59.28, marking a -0.47% move from the previous day. This change lagged the S&P 500's 0.62% gain on the day. Meanwhile, the Dow gained 0.5%, and the Nasdaq, a tech-heavy index, lost 5.66%.
Prior to today's trading, shares of the cloud-based commerce company had lost 5.71% over the past month. This has lagged the Computer and Technology sector's gain of 9.07% and the S&P 500's gain of 3.44% in that time.
Investors will be hoping for strength from Shopify as it approaches its next earnings release. On that day, Shopify is projected to report earnings of $0 per share, which would represent year-over-year growth of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.62 billion, up 24.92% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.06 per share and revenue of $6.74 billion. These results would represent year-over-year changes of +50% and +20.32%, respectively.
Any recent changes to analyst estimates for Shopify should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Shopify is currently a Zacks Rank #2 (Buy).
Investors should also note Shopify's current valuation metrics, including its Forward P/E ratio of 1003.12. This valuation marks a premium compared to its industry's average Forward P/E of 22.99.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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
Shopify Inc. (SHOP) : Free Stock Analysis Report
