Shopify (SHOP) ended the recent trading session at $116.59, demonstrating a -0.73% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.47%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.51%.
Coming into today, shares of the cloud-based commerce company had gained 10.46% in the past month. In that same time, the Computer and Technology sector lost 0.19%, while the S&P 500 gained 1.67%.
The upcoming earnings release of Shopify will be of great interest to investors. The company's earnings report is expected on February 11, 2025. The company is predicted to post an EPS of $0.44, indicating a 29.41% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.72 billion, up 27.02% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Shopify. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.42% rise in the Zacks Consensus EPS estimate. Shopify is currently a Zacks Rank #3 (Hold).
Investors should also note Shopify's current valuation metrics, including its Forward P/E ratio of 77.97. Its industry sports an average Forward P/E of 23.85, so one might conclude that Shopify is trading at a premium comparatively.
One should further note that SHOP currently holds a PEG ratio of 1.83. 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 1.75.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 31% of all 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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