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Why Shopify (SHOP) Dipped More Than Broader Market Today
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In the latest trading session, Shopify (SHOP - Free Report) closed at $131.15, marking a -2.95% move from the previous day. This change lagged the S&P 500's daily loss of 0.64%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.59%.
Prior to today's trading, shares of the cloud-based commerce company had gained 11.59% lagged the Computer and Technology sector's gain of 13.17% and outpaced the S&P 500's gain of 9.33%.
Analysts and investors alike will be keeping a close eye on the performance of Shopify in its upcoming earnings disclosure. The company's earnings report is set to go public on May 5, 2026. The company is expected to report EPS of $0.32, up 28% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.08 billion, up 30.67% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.78 per share and a revenue of $14.55 billion, signifying shifts of +52.14% and +25.87%, respectively, from the last year.
Any recent changes to analyst estimates for Shopify should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.4% downward. Shopify is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Shopify currently has a Forward P/E ratio of 75.98. This represents a premium compared to its industry average Forward P/E of 14.96.
One should further note that SHOP currently holds a PEG ratio of 3.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. SHOP's industry had an average PEG ratio of 2.08 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 182, positioning it in the bottom 26% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Why Shopify (SHOP) Dipped More Than Broader Market Today
In the latest trading session, Shopify (SHOP - Free Report) closed at $131.15, marking a -2.95% move from the previous day. This change lagged the S&P 500's daily loss of 0.64%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.59%.
Prior to today's trading, shares of the cloud-based commerce company had gained 11.59% lagged the Computer and Technology sector's gain of 13.17% and outpaced the S&P 500's gain of 9.33%.
Analysts and investors alike will be keeping a close eye on the performance of Shopify in its upcoming earnings disclosure. The company's earnings report is set to go public on May 5, 2026. The company is expected to report EPS of $0.32, up 28% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.08 billion, up 30.67% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.78 per share and a revenue of $14.55 billion, signifying shifts of +52.14% and +25.87%, respectively, from the last year.
Any recent changes to analyst estimates for Shopify should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.4% downward. Shopify is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Shopify currently has a Forward P/E ratio of 75.98. This represents a premium compared to its industry average Forward P/E of 14.96.
One should further note that SHOP currently holds a PEG ratio of 3.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. SHOP's industry had an average PEG ratio of 2.08 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 182, positioning it in the bottom 26% of all 250+ industries.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.