Shopify(US:SHOP) ZACKSยท2025-07-15 22:46Company Performance - Shopify closed at $115.01, reflecting a -1.48% change from the previous day, underperforming the S&P 500 which lost 0.4% [1] - Prior to this trading session, Shopify shares had increased by 7.72%, surpassing the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 4.97% [1] Upcoming Earnings - Shopify is expected to report an EPS of $0.28, representing a 7.69% increase from the same quarter last year [2] - Revenue is forecasted at $2.54 billion, indicating a 24.25% increase year-over-year [2] Full-Year Estimates - Full-year Zacks Consensus Estimates predict earnings of $1.4 per share and revenue of $10.86 billion, reflecting year-over-year changes of +7.69% and +22.28% respectively [3] - Recent analyst estimate revisions are seen as a positive indicator of business outlook [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a strong track record, with 1 rated stocks averaging a +25% annual return since 1988 [5] - Shopify currently holds a Zacks Rank of 1 (Strong Buy) [5] Valuation Metrics - Shopify has a Forward P/E ratio of 83.46, significantly higher than the industry average Forward P/E of 19.66 [6] - The PEG ratio for Shopify stands at 4.31, compared to the Internet - Services industry average PEG ratio of 1.54 [6] Industry Context - The Internet - Services industry is part of the Computer and Technology sector, holding a Zacks Industry Rank of 85, placing it in the top 35% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]