For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Shopify (SHOP) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of SHOP and the rest of the Computer and Technology group’s stocks.
Shopify is a member of our Computer and Technology group, which includes 630 different companies and currently sits at #13 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. SHOP is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for SHOP’s full-year earnings has moved 5.38% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, SHOP has returned 30.91% so far this year. At the same time, Computer and Technology stocks have gained an average of 21.59%. This means that Shopify is outperforming the sector as a whole this year.
Looking more specifically, SHOP belongs to the Internet – Services industry, a group that includes 48 individual stocks and currently sits at #178 in the Zacks Industry Rank. This group has gained an average of 37.34% so far this year, so SHOP is slightly underperforming its industry in this area.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to SHOP as it looks to continue its solid performance.