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

·2 min read

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? Let's take a closer look at the stock's year-to-date performance to find out.

Shopify is a member of the Computer and Technology sector. This group includes 621 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. SHOP is currently sporting a Zacks Rank of #3 (Hold).

Over the past three months, the Zacks Consensus Estimate for SHOP's full-year earnings has moved -23.84% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, SHOP has returned 0.97% so far this year. Meanwhile, the Computer and Technology sector has returned an average of 10.51% on a year-to-date basis. This shows that Shopify is outperforming its peers so far this year.

Looking more specifically, SHOP belongs to the Internet - Services industry, a group that includes 49 individual stocks and currently sits at #197 in the Zacks Industry Rank. On average, this group has gained an average of 23.49% so far this year, meaning that SHOP is slightly underperforming its industry in terms of year-to-date returns.

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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