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? A quick glance at the company’s year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Shopify is a member of our Computer and Technology group, which includes 630 different companies and currently sits at #15 in 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. 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 160.60% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
Based on the latest available data, SHOP has gained about 27.35% so far this year. In comparison, Computer and Technology companies have returned an average of 19.66%. 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 #204 in the Zacks Industry Rank. Stocks in this group have gained about 34.49% so far this year, so SHOP is slightly underperforming its industry this group in terms of year-to-date returns.
Investors in the Computer and Technology sector will want to keep a close eye on SHOP as it attempts to continue its solid performance.