In the latest trading session, Shopify (SHOP) closed at $117.64, marking a +2.32% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.18%. Meanwhile, the Dow gained 0.66%, and the Nasdaq, a tech-heavy index, added 1.96%.
Heading into today, shares of the cloud-based commerce company had lost 9.17% over the past month, lagging the Computer and Technology sector's gain of 5.37% and the S&P 500's gain of 3.93%.
The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. The company's upcoming EPS is projected at $0.32, signifying a 28.00% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.08 billion, indicating a 30.67% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.78 per share and a revenue of $14.55 billion, representing changes of +52.14% and +25.87%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shopify. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 has remained steady. Shopify is currently a Zacks Rank #2 (Buy).
Digging into valuation, Shopify currently has a Forward P/E ratio of 64.69. This indicates a premium in contrast to its industry's Forward P/E of 13.83.
It is also worth noting that SHOP currently has a PEG ratio of 3.12. 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. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.98.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 168, this industry ranks in the bottom 32% of all industries, numbering over 250.
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.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
SeeWant 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
This article originally published on Zacks Investment Research (zacks.com).