SHOPIFY INC - CLASS A (NASDAQ:SHOP) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines high growth fundamentals with a promising chart pattern, making it worth a closer look.
Strong Growth Fundamentals
SHOPIFY stands out with a Growth Rating of 9/10, reflecting its impressive historical and projected expansion:
- Revenue Growth: 26.52% over the past year, with a 5-year average of 41.27%.
- Earnings Growth: EPS surged by 35.87% YoY, with a 70.21% average annual growth rate over recent years.
- Future Expectations: Analysts forecast continued EPS growth of 20.83% annually.
The company also maintains a solid Health Rating of 9/10, indicating strong financial stability:
- No outstanding debt.
- High liquidity with a Current Ratio of 3.71, outperforming 91.46% of industry peers.
- Excellent Altman-Z score (37.27), signaling low bankruptcy risk.
While profitability is decent (Rating: 6/10), SHOPIFY trades at a premium valuation (P/E of 86.16), typical for high-growth tech stocks.
Technical Setup
The stock shows a Technical Rating of 10/10 and a Setup Rating of 7/10, suggesting consolidation near a potential breakout:
- Trend: Both short-term and long-term trends are positive.
- Support Levels: Multiple support zones, including a key area around $100-$104.
- Resistance: A breakout above $108.47 could signal further upside.
- Relative Strength: Outperforms 93% of stocks over the past year.
Why It Stands Out
SHOPIFY’s combination of rapid growth, financial health, and a constructive technical pattern makes it a candidate for investors seeking high-growth opportunities with a defined risk-reward setup.
For more details, review the full fundamental analysis or the technical report.
Our Strong Growth Stocks with Good Technical Setup screener lists more stocks meeting these criteria.
Disclaimer
This is not investment advice. Always conduct your own research before making investment decisions.
