In the latest trading session, Shopify (SHOP) closed at $81.85, marking a -0.1% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.47%. At the same time, the Dow added 0.79%, and the tech-heavy Nasdaq gained 0.28%.

Coming into today, shares of the cloud-based commerce company had gained 10.05% in the past month. In that same time, the Computer and Technology sector gained 3.88%, while the S&P 500 gained 3.48%.

The investment community will be paying close attention to the earnings performance of Shopify in its upcoming release. The company is forecasted to report an EPS of $0.27, showcasing a 12.5% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.11 billion, indicating a 22.9% increase compared to the same quarter of the previous year.

SHOP's full-year Zacks Consensus Estimates are calling for earnings of $1.12 per share and revenue of $8.62 billion. These results would represent year-over-year changes of +51.35% and +22.15%, respectively.

Investors should also note any recent changes to analyst estimates for Shopify. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Shopify is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, Shopify is holding a Forward P/E ratio of 73.41. This indicates a premium in contrast to its industry's Forward P/E of 37.19.

Meanwhile, SHOP's PEG ratio is currently 1.87. 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 2.28.

The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 32% of over 250 industries.