In the latest trading session, Shopify (SHOP) closed at $1,142.94, marking a +1.87% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.67%.
On that day, SHOP is projected to report earnings of $0.89 per share, which would represent a year-over-year decline of 15.24%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $985.52 million, up 37.96% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.94 per share and revenue of $4.18 billion. These totals would mark changes of -1.01% and +42.83%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for SHOP. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 28.66% higher. SHOP is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note SHOP's current valuation metrics, including its Forward P/E ratio of 284.6. This valuation marks a premium compared to its industry's average Forward P/E of 28.17.
It is also worth noting that SHOP currently has a PEG ratio of 11.38. 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. SHOP's industry had an average PEG ratio of 1.57 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 26% 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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