Shopify (SHOP) closed the most recent trading day at $79.87, moving +1.04% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.27%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq gained 0.26%.

Prior to today's trading, shares of the cloud-based commerce company had lost 0.2% over the past month. This has lagged the Computer and Technology sector's gain of 2.21% and the S&P 500's gain of 2% in that time.

Market participants will be closely following the financial results of Shopify in its upcoming release. The company plans to announce its earnings on November 12, 2024. 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 Zacks Consensus Estimate for revenue is projecting net sales of $2.11 billion, up 22.9% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.12 per share and a revenue of $8.62 billion, signifying shifts of +51.35% and +22.15%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Shopify. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Shopify possesses a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Shopify has a Forward P/E ratio of 70.83 right now. This signifies a premium in comparison to the average Forward P/E of 34.53 for its industry.

Also, we should mention that SHOP has a PEG ratio of 1.81. 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. SHOP's industry had an average PEG ratio of 2.25 as of yesterday's close.