Shopify (SHOP) Increases Yet Falls Behind Market: What Investors Need to Know

Group 1 - Shopify's stock closed at $106.37, reflecting a slight increase of +0.08% from the previous trading day, underperforming compared to the S&P 500 which gained 0.61% [1] - Over the past month, Shopify's shares have decreased by 3.54%, while the Computer and Technology sector and the S&P 500 have increased by 1.24% and 2.08% respectively [1] Group 2 - Shopify is expected to report earnings on February 11, 2025, with an estimated EPS of$ 0.44, representing a 29.41% increase from the prior-year quarter, and projected revenue of $2.72 billion, up 27.02% from the prior-year quarter [2] - Recent changes to analyst estimates for Shopify indicate a positive outlook, suggesting optimism regarding the company's business and profitability [3] Group 3 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have returned an average of +25% annually since 1988, with Shopify currently holding a Zacks Rank of 3 (Hold) [5] - Shopify's Forward P/E ratio is 70.56, indicating a premium compared to the industry's average Forward P/E of 22.69 [5] Group 4 - The PEG ratio for Shopify is currently 1.66, which is slightly above the Internet - Services industry's average PEG ratio of 1.6 [6] - The Internet - Services industry, part of the Computer and Technology sector, ranks in the top 30% of all industries according to the Zacks Industry Rank [6][7]