Shopify (SHOP) Declines More Than Market: Some Information for Investors

Group 1 - Shopify's recent trading session ended at $116.59, reflecting a -0.73% change from the previous day's closing price, which is a lag compared to the S&P 500's daily loss of 0.47% [1] - Over the past month, Shopify's shares have gained 10.46%, while the Computer and Technology sector has lost 0.19% and the S&P 500 has gained 1.67% [1] Group 2 - Shopify's upcoming earnings report is expected on February 11, 2025, with a predicted EPS of$ 0.44, indicating a 29.41% growth compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue projects net sales of $2.72 billion, up 27.02% from the year-ago period [2] Group 3 - Recent changes to analyst estimates for Shopify reflect evolving short-term business trends, with positive revisions indicating analyst optimism regarding the company's business and profitability [3] - The Zacks Rank system, which incorporates estimate changes, has shown that 1 ranked stocks yield an average annual return of +25% since 1988 [4][5] Group 4 - Shopify's current Forward P/E ratio is 77.97, significantly higher than the industry average of 23.85, suggesting that Shopify is trading at a premium [6] - The company has a PEG ratio of 1.83, compared to the Internet - Services industry's average PEG ratio of 1.75 [7] Group 5 - The Internet - Services industry, which includes Shopify, holds a Zacks Industry Rank of 76, placing it in the top 31% of all 250+ industries [7][8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]