The most recent trading session ended with Shopify (SHOP) standing at $101.61, reflecting a -0.15% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.12%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq decreased by 0.23%.

The cloud-based commerce company's stock has dropped by 12.23% in the past month, falling short of the Computer and Technology sector's loss of 3.73% and the S&P 500's loss of 3.45%.

The upcoming earnings release of Shopify will be of great interest to investors. The company's upcoming EPS is projected at $0.44, signifying a 29.41% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.72 billion, indicating a 27.03% upward movement from the same quarter last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Shopify. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.48% increase. Currently, Shopify is carrying a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 67.53 right now. This denotes a premium relative to the industry's average Forward P/E of 21.51.

Investors should also note that SHOP has a PEG ratio of 1.59 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.5 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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