Shopify (SHOP) Falls More Than the Market: Key Facts

The most recent trading session saw Shopify (SHOP) close at $78.72, a decrease of 1.09% from the previous day's closing price. Compared to the S&P 500, which lost 0.14 percent that day, the stock was below average. Somewhere else, the tech-heavy Nasdaq rose 0.17 percent, while the Dow fell 0.77 percent.

As of today's market close, the cloud-based commerce company's shares had increased by 6.08% month-to-date, which was more than the S&P 500's gain of 5.34% but lower than the Computer and Technology sector's gain of 6.81%.

Until Shopify releases its earnings report, investors will be keeping a careful eye on the company. Earnings per share (EPS) for the current quarter are expected to be $0.16, an increase of 1,500% over the same period last year. Quarterly sales of $1.83 billion, an increase of 21.24% from the same period last year, is what our most current consensus estimate is predicting.

Zacks Consensus Estimates for the entire year indicate a change of +27.03% in profits per share and a change of +20.07% in sales from the previous year, with $8.48 billion in revenue projected.

Additionally, investors should be mindful of any changes to Shopify analyst estimates. The dynamic character of near-term business developments is better illustrated by these modifications. Therefore, analysts' optimism over the company's business and profitability is reflected in favorable estimate revisions.

Our findings indicate a correlation between these revisions to estimates and the future performance of stock prices. Our proprietary Zacks Rank algorithm accounts for these variations in estimates and gives a useful grading system so that you may profit from this.

From #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank methodology ranks stocks based on their performance. Since 1988, the #1 ranked stocks have generated an average yearly return of 25%. This outperformance is backed by external audits. Over the last 30 days, there has been a 2.49% decrease in the Zacks Consensus EPS estimate. At the moment, Shopify is rated #3 (Hold) by Zacks.

In addition, the Forward P/E ratio of 84.28 is one of the current valuation measures that investors should keep in mind while considering Shopify. When compared to the average Forward P/E for its industry, which is 25.97, this valuation is considered premium.

The Computer and Technology industry includes the Internet-Services industry. This category ranks 77th out of 250+ according to Zacks Industry Rank, placing it in the upper third of all industries.

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