Back to top

Image: Bigstock

Shopify (SHOP) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Shopify (SHOP - Free Report) closed the most recent trading day at $126.84, moving +1.94% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.02%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 0.33%.

Shares of the cloud-based commerce company witnessed a gain of 9.49% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.31%, and the S&P 500's gain of 4.93%.

The investment community will be closely monitoring the performance of Shopify in its forthcoming earnings report. The company is scheduled to release its earnings 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. At the same time, our most recent consensus estimate is projecting a revenue of $2.54 billion, reflecting a 24.25% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.4 per share and revenue of $10.86 billion. These totals would mark changes of +7.69% and +22.28%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Shopify. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Shopify currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note Shopify's current valuation metrics, including its Forward P/E ratio of 88.96. This indicates a premium in contrast to its industry's Forward P/E of 20.42.

One should further note that SHOP currently holds a PEG ratio of 4.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.61 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Shopify Inc. (SHOP) - free report >>

Published in