Shopify (SHOP) closed the latest trading day at $101.85, indicating a +0.31% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 0.22%. On the other hand, the Dow registered a loss of 0.03%, and the technology-centric Nasdaq decreased by 0.33%.
The the stock of cloud-based commerce company has fallen by 20.46% in the past month, lagging the Computer and Technology sector's loss of 12% and the S&P 500's loss of 7.48%.
Investors will be eagerly watching for the performance of Shopify in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.26, signifying a 30% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.33 billion, reflecting a 25.28% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.49 per share and a revenue of $10.86 billion, indicating changes of +14.62% and +22.29%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Shopify. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Shopify holds a Zacks Rank of #3 (Hold).
Digging into valuation, Shopify currently has a Forward P/E ratio of 68.36. This represents a premium compared to its industry's average Forward P/E of 21.73.
We can additionally observe that SHOP currently boasts a PEG ratio of 2.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.3.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 41% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Shopify Inc. (SHOP) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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