Delving into NYSE:SHOP's high Growth Prospects.

Our stockscreener has identified a possible breakout setup on SHOPIFY INC - CLASS A (NYSE:SHOP). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:SHOP for potential opportunities.

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

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

We assign a technical rating of 8 out of 10 to SHOP. In the last year, SHOP was one of the better performers, but we do observe some doubts in the very recent evolution.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• When comparing the yearly performance of all stocks, we notice that SHOP is one of the better performing stocks in the market, outperforming 87% of all stocks.
• SHOP is part of the IT Services industry. There are 83 other stocks in this industry. SHOP outperforms 73% of them.
• SHOP is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so SHOP is performing more or less in line with the market.
• In the last month SHOP has a been trading in the 104.50 - 120.10 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of SHOP

How does the Setup look for NYSE:SHOP

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:SHOP currently has a 7 as setup rating:

Besides having an excellent technical rating, SHOP also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 106.77, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Looking into the high growth metrics of SHOPIFY INC - CLASS A

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), SHOPIFY INC - CLASS A highlights its ability to generate increasing profitability, showcasing a 45.83% growth.
• The recent q2q revenue growth of 26.14% of SHOPIFY INC - CLASS A showcases the company's ability to generate increasing revenue in a short period, reflecting its positive growth trajectory.
• With notable 1-year revenue growth of 23.47%, SHOPIFY INC - CLASS A exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• Over the past 3 months, analysts have adjusted their EPS Estimate for SHOPIFY INC - CLASS A with a 19.17% change. This highlights the evolving outlook on the company's EPS potential.
• In the most recent financial report, SHOPIFY INC - CLASS A reported a 45.83% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• SHOPIFY INC - CLASS A has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• 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.
• With a solid Return on Equity (ROE) of 13.68%, SHOPIFY INC - CLASS A exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• With a current Debt-to-Equity ratio at 0.09, SHOPIFY INC - CLASS A showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• With institutional shareholders at 70.55%, SHOPIFY INC - CLASS A demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• SHOPIFY INC - CLASS A has a strong history of beating EPS estimates in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.
• SHOPIFY INC - CLASS A has achieved an impressive Relative Strength (RS) rating of 87.83, showcasing its ability to outperform the broader market. This strong performance positions SHOPIFY INC - CLASS A as an attractive stock for potential price appreciation.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.