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

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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 - Free Report) 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? 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 621 different companies and currently sits at #9 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 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. Shopify 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 3.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, SHOP has returned 16.5% so far this year. At the same time, Computer and Technology stocks have gained an average of 10.4%. This shows that Shopify is outperforming its peers so far this year.

Another stock in the Computer and Technology sector, AppFolio (APPF - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 34.9%.

In AppFolio's case, the consensus EPS estimate for the current year increased 9.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Shopify belongs to the Internet - Services industry, which includes 39 individual stocks and currently sits at #156 in the Zacks Industry Rank. This group has gained an average of 7% so far this year, so SHOP is performing better in this area.

On the other hand, AppFolio belongs to the Internet - Software industry. This 146-stock industry is currently ranked #77. The industry has moved +18.9% year to date.

Investors with an interest in Computer and Technology stocks should continue to track Shopify and AppFolio. These stocks will be looking to continue their solid performance.


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