Shopify (SHOP) ended the recent trading session at $98.57, demonstrating a +1.49% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.06%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the cloud-based commerce company had gained 0.46% over the past month, outpacing the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 4.29% in that time.
Investors will be eagerly watching for the performance of Shopify in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 8, 2025. The company's earnings per share (EPS) are projected to be $0.26, reflecting a 30% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.33 billion, indicating a 25.28% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.45 per share and revenue of $10.81 billion. These totals would mark changes of +11.54% and +21.75%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Shopify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.76% decrease. Shopify is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Shopify's current valuation metrics, including its Forward P/E ratio of 66.9. This denotes a premium relative to the industry's average Forward P/E of 18.83.
Investors should also note that SHOP has a PEG ratio of 2.95 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 1.31 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 174, this industry ranks in the bottom 30% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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