Exploring high growth characteristics of SHOPIFY INC - CLASS A (NYSE:SHOP).

Our stock screener has detected a potential breakout setup on SHOPIFY INC - CLASS A (NYSE:SHOP). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:SHOP.

What is the technical picture of NYSE:SHOP telling us.

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Overall SHOP gets a technical rating of 10 out of 10. Both in the recent history as in the last year, SHOP has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that SHOP is one of the better performing stocks in the market, outperforming 93% of all stocks.
• SHOP is part of the IT Services industry. There are 83 other stocks in this industry. SHOP outperforms 82% of them.
• SHOP is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month SHOP has a been trading in the 102.58 - 120.72 range, which is quite wide. It is currently trading near the high of this range.

Our latest full technical report of SHOP contains the most current technical analsysis.

How does the Setup look for NYSE:SHOP

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:SHOP has a 7 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, SHOP also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Why NYSE:SHOP may be interesting for high growth investors.

• SHOPIFY INC - CLASS A has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 45.83% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• SHOPIFY INC - CLASS A has achieved significant quarter-to-quarter (Q2Q) revenue growth of 26.14%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
• SHOPIFY INC - CLASS A has demonstrated strong 1-year revenue growth of 23.47%, reflecting revenue momentum and its ability to generate consistent top-line expansion. This growth underscores the company's strong market position and its potential for future success.
• The average next Quarter EPS Estimate for SHOPIFY INC - CLASS A has experienced a 19.17% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
• The quarterly earnings of SHOPIFY INC - CLASS A have shown a 45.83% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• The operating margin of SHOPIFY INC - CLASS A has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• SHOPIFY INC - CLASS A has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• SHOPIFY INC - CLASS A has achieved an impressive Return on Equity (ROE) of 13.68%, showcasing its ability to generate favorable returns for shareholders.
• Maintaining a Debt-to-Equity ratio of 0.09, SHOPIFY INC - CLASS A demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• The ownership composition of SHOPIFY INC - CLASS A reflects a balanced investor ecosystem, with institutional shareholders owning 64.6%. This indicates a broader market participation and potential for increased trading liquidity.
• With a track record of beating EPS estimates in the last 4 quarters, SHOPIFY INC - CLASS A showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.
• The Relative Strength (RS) of SHOPIFY INC - CLASS A has been consistently solid, with a current 93.68 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage. SHOPIFY INC - CLASS A exhibits strong prospects for further price appreciation.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.