Shopify (SHOP) closed at $173.48 in the latest trading session, marking a +1.41% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq lost 0.02%.
Shares of the cloud-based commerce company have appreciated by 24.03% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.28%, and the S&P 500's gain of 0.67%.
The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. The company is slated to reveal its earnings on November 3, 2026. The company is forecasted to report an EPS of $0.45, showcasing a 32.35% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $3.74 billion, indicating a 31.33% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.89 per share and a revenue of $15.19 billion, signifying shifts of +61.54% and +31.46%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Shopify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. Shopify is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, Shopify is holding a Forward P/E ratio of 90.32. This represents a premium compared to its industry average Forward P/E of 14.91.
It's also important to note that SHOP currently trades at a PEG ratio of 2.73. 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. SHOP's industry had an average PEG ratio of 1.61 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 72, this industry ranks in the top 30% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Shopify Inc. (SHOP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).