Shopify (SHOP) closed the most recent trading day at $162.64, moving -1.26% from the previous trading session. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw a decrease of 0.16%.
Coming into today, shares of the cloud-based commerce company had gained 4.83% in the past month. In that same time, the Computer and Technology sector gained 1.8%, while the S&P 500 gained 1.16%.
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 4, 2025. The company is expected to report EPS of $0.34, down 5.56% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.75 billion, indicating a 27.3% upward movement from the same quarter last year.
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 take note of any recent adjustments to analyst estimates for Shopify. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.21% rise in the Zacks Consensus EPS estimate. Shopify is currently sporting a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Shopify is currently exchanging hands at a Forward P/E ratio of 113.4. This represents a premium compared to its industry average Forward P/E of 25.78.
One should further note that SHOP currently holds a PEG ratio of 5.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.74.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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