IIn the last trading session, Shopify (SHOP) closed at $ 1,346.55, marking a movement of -1.66% from the previous day. This change was smaller than the S&P 500’s 0.16% gain on the day.
As of today dawn, shares of the cloud-based trading company had lost 10.2% in the past month, behind the 4.96% loss in the IT and tech sector and the loss of 3.32% of the S&P 500 during this period.
Wall Street will be researching the positivity of SHOP as the date of its next earnings report approaches. In this report, analysts expect SHOP to post earnings of $ 1.21 per share. This would mark year-over-year growth of 7.08%. Our most recent consensus estimate projects quarterly revenue of $ 1.14 billion, up 48.94% from the previous year.
Zacks’ consensus estimates for SHOP’s full year forecast earnings of $ 6.72 per share and revenue of $ 4.61 billion. These results would represent year-over-year variations of + 68.84% and + 57.51%, respectively.
Investors may also notice recent changes in analyst estimates for SHOP. These recent revisions tend to reflect the evolving nature of short-term business trends. Thus, the positive estimate revisions reflect the optimism of analysts about the business and profitability of the company.
Our research shows that these changes in estimate are directly correlated with short-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these rating changes into account and provides an actionable rating system.
Zacks’ ranking system ranges from # 1 (strong buy) to # 5 (strong sell). It has a remarkable, externally verified track record of success, with No.1 stocks generating an average annual return of + 25% since 1988. Zacks Consensus’s EPS estimate has remained stagnant over the past month. SHOP currently has a Zacks rank of # 4 (Sell).
Valuation is also important, so investors should note that SHOP currently has a forward P / E ratio of 203.63. For comparison, his industry has an average forward P / E of 27.76, which means SHOP is trading at a premium to the group.
Investors should also note that SHOP currently has a PEG ratio of 7.4. This popular metric is similar to the well-known P / E ratio, except that the PEG ratio also takes into account the expected rate of earnings growth of the company. Internet Services stocks are averaging a PEG ratio of 3.92 based on yesterday’s closing prices.
The Internet – Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 170, which places it in the lowest 34% of all 250+ industries.
The Zacks Industry Rank includes is ranked from best to worst in terms of the average Zacks Rank of individual companies in each of these industries. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock market metrics and more on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.