May 25, 2024

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Is Shopify (SHOP) Stock Outpacing Its Computer and Technology Peers This Year?

Investors focused on the Computer and Technology space have likely heard of Shopify (SHOP), but is the stock performing well in comparison to the rest of its sector peers? 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 606 different companies and currently sits at #10 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 #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for SHOP’s full-year earnings has moved 28.09% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.

Based on the latest available data, SHOP has gained about 155.04% so far this year. In comparison, Computer and Technology companies have returned an average of 14.46%. 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 47 individual stocks and currently sits at #85 in the Zacks Industry Rank. This group has gained an average of 15.94% so far this year, so SHOP is performing better in this area.

SHOP will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.

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