Has Shopify (SHOP) Outpaced Other Computer and Technology Stocks This Year?
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 one of 606 companies in the Computer and Technology group. The Computer and Technology group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. SHOP is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for SHOP's full-year earnings has moved 30.92% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that SHOP has returned about 147.75% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 14.52%. This means that Shopify is performing better than its sector in terms of year-to-date returns.
Looking more specifically, SHOP belongs to the Internet - Services industry, which includes 47 individual stocks and currently sits at #118 in the Zacks Industry Rank. On average, this group has gained an average of 14.22% so far this year, meaning that SHOP is performing better in terms of year-to-date returns.
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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.