In the latest close session, Shopify (SHOP) was down 9.77% at $119.29. The stock's change was less than the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 1.43%.
Coming into today, shares of the cloud-based commerce company had lost 20.46% in the past month. In that same time, the Computer and Technology sector gained 1.75%, while the S&P 500 gained 1.8%.
The upcoming earnings release of Shopify will be of great interest to investors. The company's earnings report is expected on February 11, 2026. The company's upcoming EPS is projected at $0.5, signifying a 13.64% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $3.58 billion, up 27.33% from the year-ago period.
SHOP's full-year Zacks Consensus Estimates are calling for earnings of $1.45 per share and revenue of $11.46 billion. These results would represent year-over-year changes of +11.54% and 0%, respectively.
Investors should also pay attention to any latest changes in 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.49% higher. As of now, Shopify holds a Zacks Rank of #3 (Hold).
In the context of valuation, Shopify is at present trading with a Forward P/E ratio of 74.43. This valuation marks a premium compared to its industry average Forward P/E of 16.93.
It's also important to note that SHOP currently trades at a PEG ratio of 3.01. 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 had an average PEG ratio of 1.94 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 163, positioning it in the bottom 34% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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