Shopify (SHOP) closed at $156.21 in the latest trading session, marking a +2.18% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.4%. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.66%.
Prior to today's trading, shares of the cloud-based commerce company had gained 3.85% outpaced the Computer and Technology sector's gain of 2.27% and the S&P 500's gain of 1.02%.
The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. The company is scheduled to release its earnings on November 4, 2025. The company is predicted to post an EPS of $0.34, indicating a 5.56% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.75 billion, up 27.3% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.45 per share and revenue of $11.25 billion, indicating changes of +11.54% and +26.68%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Shopify. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.21% upward. Shopify is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 105.25 right now. For comparison, its industry has an average Forward P/E of 24.17, which means Shopify is trading at a premium to the group.
We can additionally observe that SHOP currently boasts a PEG ratio of 5.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services industry had an average PEG ratio of 1.66 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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