In the latest trading session, Shopify (SHOP) closed at $175.06, marking a +1.22% move from the previous day. This move lagged the S&P 500's daily gain of 1.23%. On the other hand, the Dow registered a gain of 0.72%, and the technology-centric Nasdaq increased by 1.86%.
Coming into today, shares of the cloud-based commerce company had gained 23.32% in the past month. In that same time, the Computer and Technology sector gained 3.49%, while the S&P 500 gained 2.45%.
The upcoming earnings release of Shopify will be of great interest to investors. The company's earnings report is expected on November 4, 2025. The company is expected to report EPS of $0.34, down 5.56% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.75 billion, indicating a 27.3% growth compared to the corresponding quarter of the prior 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.
Any recent changes to analyst estimates for Shopify should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.21% increase. Shopify presently features a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Shopify is currently trading at a Forward P/E ratio of 119.07. This represents a premium compared to its industry average Forward P/E of 25.92.
It's also important to note that SHOP currently trades at a PEG ratio of 6.05. 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 industry currently had an average PEG ratio of 1.76 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 148, positioning it in the bottom 41% 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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