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In the latest close session, Shopify (SHOP - Free Report) was up +1.07% at $128.43. The stock exceeded the S&P 500, which registered a gain of 0.14% for the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.38%.
Shares of the cloud-based commerce company witnessed a gain of 19.43% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.37%, and the S&P 500's gain of 5.35%.
The upcoming earnings release of Shopify will be of great interest to investors. The company's earnings report is expected on August 6, 2025. The company is predicted to post an EPS of $0.28, indicating a 7.69% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.54 billion, up 24.25% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.4 per share and a revenue of $10.86 billion, demonstrating changes of +7.69% and +22.28%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shopify. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Shopify is currently a Zacks Rank #1 (Strong Buy).
With respect to valuation, Shopify is currently being traded at a Forward P/E ratio of 90.85. For comparison, its industry has an average Forward P/E of 19.93, which means Shopify is trading at a premium to the group.
We can also see that SHOP currently has a PEG ratio of 4.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services industry had an average PEG ratio of 1.57 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 37% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Shopify (SHOP) Laps the Stock Market: Here's Why
In the latest close session, Shopify (SHOP - Free Report) was up +1.07% at $128.43. The stock exceeded the S&P 500, which registered a gain of 0.14% for the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.38%.
Shares of the cloud-based commerce company witnessed a gain of 19.43% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.37%, and the S&P 500's gain of 5.35%.
The upcoming earnings release of Shopify will be of great interest to investors. The company's earnings report is expected on August 6, 2025. The company is predicted to post an EPS of $0.28, indicating a 7.69% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.54 billion, up 24.25% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.4 per share and a revenue of $10.86 billion, demonstrating changes of +7.69% and +22.28%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Shopify. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Shopify is currently a Zacks Rank #1 (Strong Buy).
With respect to valuation, Shopify is currently being traded at a Forward P/E ratio of 90.85. For comparison, its industry has an average Forward P/E of 19.93, which means Shopify is trading at a premium to the group.
We can also see that SHOP currently has a PEG ratio of 4.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services industry had an average PEG ratio of 1.57 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 37% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.