Shopify (SHOP, $1,594.68) shares rise, on bullish views
Shopify shares climbed Thursday to touch a record high, following optimistic views from analysts.
Stifel’s Scott Devitt raised his price target on the e-commerce company’s shares to $1,600 from $1,400, while maintaining his buy rating.
Devitt mentioned the company’s “proven track record of creating products and services that generate value for merchants”, and said that he expects the ongoing investments to create monetization improvements as the platform continues to scale. The analyst also indicated that the company’s outlook for the second half of the year is crucial on challenging prior year comparisons during reopening.
Susquehanna Financial Group’s John Coffey boosted his price target on Shopify shares to $1,800 from $1,500, while keeping his positive rating. According to Coffey, Shopify’s focus on raising operating spending in Europe this year is a wise decision. Coffey also boosted his revenue outlook for 2022 and 2023.
Shopify stock has surged +33% in the past six months.
SHOP's Indicator enters downward trend
The Aroon Indicator for SHOP entered a downward trend on May 16, 2022. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 128 similar instances where the Aroon Indicator formed such a pattern. In 99 of the 128 cases the stock moved lower. This puts the odds of a downward move at 77%.
Current price $359.96 is below $405.00 the lowest support line found by A.I. Throughout the month of 04/13/22 - 05/16/22, the price experienced a -40% Downtrend, while the week of 05/09/22 - 05/16/22 shows a +6% Uptrend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SHOP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 71%.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where SHOP's RSI Indicator exited the oversold zone, 15 of 18 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 83%.
The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 42 of 53 cases where SHOP's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 79%.
The Moving Average Convergence Divergence (MACD) for SHOP just turned positive on May 16, 2022. Looking at past instances where SHOP's MACD turned positive, the stock continued to rise in 46 of 52 cases over the following month. The odds of a continued upward trend are 88%.
Following a +26.33% 3-day Advance, the price is estimated to grow further. Considering data from situations where SHOP advanced for three days, in 300 of 360 cases, the price rose further within the following month. The odds of a continued upward trend are 83%.
SHOP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 85%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.97.
The Tickeron Price Growth Rating for this company is 95 (best 1 - 100 worst), indicating slightly worse than average price growth. SHOP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 93 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.187) is normal, around the industry mean (16.471). P/E Ratio (322.581) is within average values for comparable stocks, (154.393). Projected Growth (PEG Ratio) (10.090) is also within normal values, averaging (4.591). Dividend Yield (0.000) settles around the average of (0.027) among similar stocks. P/S Ratio (10.604) is also within normal values, averaging (124.500).
The Tickeron SMR rating for this company is 87 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 75 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SHOP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 2 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
The average market capitalization across the Packaged Software Industry is 6.2B. The market cap for tickers in the group ranges from 580 to 2T. MSFT holds the highest valuation in this group at 2T. The lowest valued company is NANN at 580.
The average weekly price growth across all stocks in the Packaged Software Industry was 0.15%. For the same Industry, the average monthly price growth was -14.66%, and the average quarterly price growth was -24.13%. LAAB experienced the highest price growth at 126%, while SGNI experienced the biggest fall at -97.03%.
- 5/14/22 4:23 AM: Shopify (SHOP, $402.48) was a top weekly gainer, with a +6.62% jump
- 5/4/22 8:26 AM: Shopify (SHOP, $465.2) was a top weekly gainer, with a +8.67% jump. Expect an Uptrend continuation
- 3/16/22 5:12 AM: Shopify (SHOP, $553.43) was a top weekly gainer, with a +7.47% jump
The average weekly volume growth across all stocks in the Packaged Software Industry was 19.51%. For the same stocks of the Industry, the average monthly volume growth was 113.57% and the average quarterly volume growth was 41.15%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the MA200MA50 Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 60%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.51.
21 stocks in the group of tickers exhibit a similar negative trend based on the TrendWeek indicator with an average likelihood of 86%.
The most notable companies in this group are Amazon.com (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), JD.com (NASDAQ:JD), Shopify (NYSE:SHOP), Pinduoduo (NASDAQ:PDD), Chewy (NYSE:CHWY), Wayfair (NYSE:W), Vipshop Holdings Limited (NYSE:VIPS), Revolve Group (NYSE:RVLV), Overstock.com (NASDAQ:OSTK).
The average market capitalization across the group is 30.8B. The market cap for tickers in the group ranges from 0 to 1.2T. AMZN holds the highest valuation in this group at 1.2T. The lowest valued company is SGUJ at 0.
- 5/14/22 4:23 AM: Amazon.com (AMZN, $2,261.1), market cap jumped by $62.3B
- 5/10/22 5:36 AM: Amazon.com (AMZN, $2,175.78) saw a $159.8B market cap decrease this week
- 5/3/22 8:18 AM: Amazon.com (AMZN, $2,490) saw a $219.0B market cap decrease this week
The average weekly price growth across all stocks in the group was -0.03%. For the same group, the average monthly price growth was -20.55%, and the average quarterly price growth was -48.76%. WETG experienced the highest price growth at 67.89%, while IMBI experienced the biggest fall at -26.51%.
- 5/14/22 4:23 AM: Dingdong (Cayman) (DDL, $4.75) was a top weekly gainer, with a +19.05% jump
- 5/14/22 4:23 AM: Coupang (CPNG, $13.34) was a top weekly gainer, with a +10.8% jump
- 5/14/22 4:23 AM: Blue Apron Holdings (APRN, $3.68) was a top weekly gainer, with a +13.23% jump
The average weekly volume growth across all stocks in the group was -48.15%. For the same stocks of the group, the average monthly volume growth was -5.53% and the average quarterly volume growth was 38.06%
- 5/6/22 5:00 AM: The volume for Missfresh stock increased for a consecutive 5 days, with an average daily gain of 334%
- 5/5/22 4:51 AM: The volume for Missfresh stock increased for four consecutive days, resulting in a record-breaking daily growth of 379% of the 65-Day Volume Moving Average
- 5/4/22 8:21 AM: The volume for Missfresh stock increased for three consecutive days, resulting in a record-breaking daily growth of 436% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows