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Why the Market Dipped But Shopify (SHOP) Gained Today

Shopify (SHOP) ended the recent trading session at $69.41, demonstrating a +1.03% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.58%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 1.15%.

Coming into today, shares of the cloud-based commerce company had lost 11.39% in the past month. In that same time, the Computer and Technology sector lost 0.47%, while the S&P 500 lost 1.09%.

The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. The company is predicted to post an EPS of $0.16, indicating a 1500% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.83 billion, showing a 21.48% escalation compared to the year-ago quarter.

SHOP's full-year Zacks Consensus Estimates are calling for earnings of $0.95 per share and revenue of $8.5 billion. These results would represent year-over-year changes of +28.38% and +20.46%, respectively.

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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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.68% higher. As of now, Shopify holds a Zacks Rank of #3 (Hold).

In terms of valuation, Shopify is presently being traded at a Forward P/E ratio of 72.32. This signifies a premium in comparison to the average Forward P/E of 23.01 for its industry.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 45, positioning it in the top 18% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Shopify Inc. (SHOP) : Free Stock Analysis Report

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