Earnings Growth & Price Strength Make Shopify (SHOP) a Stock to Watch

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If you're a beginner investor, the idea of creating a portfolio from the ground up can feel like an impossible goal to achieve. That's why you should start by looking at stocks that are set to beat the market over the next 12 months, a strategy that's been proven to generate strong returns.

Now, let's take a deep dive into a great stock that could be just the right addition to your portfolio.

Why You Should Pay Attention to Shopify (SHOP)

Ottawa, Canada-based Shopify Inc. provides a multi-tenant, cloud-based, multi-channel commerce platform for small and medium-sized businesses (SMBs). The company completed Initial Public Offering (IPO) in May 2015.

Since being added to the Zacks Focus List on September 6, 2022 at $29.94 per share, shares of SHOP have increased 160.19% to $77.90.

13 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.17 to $0.70. SHOP boasts an average earnings surprise of 106.1%.

Additionally, Shopify's earnings are expected to grow 1650% for the current fiscal year.

It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding a Focus List stock like SHOP, there's a great chance you'll be getting into a company whose future earnings estimates will be raised, which can lead to price momentum.

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