Shopify (SHOP) closed the most recent trading day at $123.55, moving -1.69% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.62%.
Shares of the cloud-based commerce company have appreciated by 10.99% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.53%, and the S&P 500's gain of 1.61%.
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 August 5, 2026. On that day, Shopify is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 11.43%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.43 billion, indicating a 28.03% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.84 per share and a revenue of $14.71 billion, representing changes of +57.26% and +27.28%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shopify. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 past month, the Zacks Consensus EPS estimate has remained steady. As of now, Shopify holds a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Shopify is at present trading with a Forward P/E ratio of 68.41. This represents a premium compared to its industry average Forward P/E of 17.16.
It is also worth noting that SHOP currently has a PEG ratio of 2.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 39% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Shopify Inc. (SHOP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).