In the latest market close, Shopify (SHOP) reached $83.41, with a +1.01% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.71%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.6%.

Coming into today, shares of the cloud-based commerce company had gained 21.14% in the past month. In that same time, the Computer and Technology sector gained 9.96%, while the S&P 500 gained 6.41%.

The upcoming earnings release of Shopify will be of great interest to investors. In that report, analysts expect Shopify to post earnings of $0.27 per share. This would mark year-over-year growth of 12.5%. Alongside, our most recent consensus estimate is anticipating revenue of $2.11 billion, indicating a 22.95% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.12 per share and a revenue of $8.62 billion, indicating changes of +51.35% and +22.16%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Shopify. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Shopify currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note Shopify's current valuation metrics, including its Forward P/E ratio of 73.99. This indicates a premium in contrast to its industry's Forward P/E of 33.93.

One should further note that SHOP currently holds a PEG ratio of 1.89. 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 industry currently had an average PEG ratio of 2.23 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 101, putting it in the top 41% of all 250+ industries.