In the latest trading session, Shopify (SHOP) closed at $130.28, marking a +2.68% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.21%. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq lost 0.22%.

Shares of the cloud-based commerce company witnessed a gain of 11.09% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.91%, and the S&P 500's gain of 1.7%.

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 August 5, 2026. In that report, analysts expect Shopify to post earnings of $0.39 per share. This would mark year-over-year growth of 11.43%. Alongside, our most recent consensus estimate is anticipating revenue of $3.43 billion, indicating a 28.11% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.84 per share and revenue of $14.72 billion. These totals would mark changes of +57.26% and +27.37%, respectively, from last year.

It is also important to note the 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 shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.56% upward. As of now, Shopify holds a Zacks Rank of #3 (Hold).

With respect to valuation, Shopify is currently being traded at a Forward P/E ratio of 68.86. This indicates a premium in contrast to its industry's Forward P/E of 16.03.

We can also see that SHOP currently has a PEG ratio of 2.08. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.79.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 164, putting 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.

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 Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research