SHOPIFY INC - CLASS A (NASDAQ:SHOP) – A Strong Growth Stock with Technical Breakout Potential

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 an interesting candidate for investors seeking growth opportunities.

Strong Growth Fundamentals

SHOPIFY’s fundamental report highlights several strengths:

• Growth Rating (9/10): The company has demonstrated impressive revenue and earnings growth, with a 26.52% increase in revenue over the past year and a 70.21% annualized EPS growth rate over multiple years. Future estimates suggest continued growth, with EPS expected to rise by 20.47% annually.
• Profitability (6/10): SHOPIFY maintains solid margins, including a 17.17% profit margin, outperforming 95% of its IT Services industry peers. Operating margins have also improved recently.
• Financial Health (9/10): The company has no debt, a strong current ratio of 3.71, and an Altman-Z score of 36.70, indicating low bankruptcy risk.

Despite a high valuation (P/E of 85.12), the growth trajectory may justify the premium for investors focused on long-term expansion.

Technical Breakout Potential

The technical analysis report shows:

• Strong Trends: Both short-term and long-term trends are positive, with the stock outperforming 91% of the market over the past year.
• Consolidation & Setup (7/10): SHOP has been trading in a range between $100.31 and $117.36, with recent price action suggesting a potential breakout. A Pocket Pivot signal—where price rises on higher volume—adds to the bullish case.
• Key Levels: Resistance lies between $106.83 and $114.13, while support is found near $91.77 and $78.14. A move above resistance could signal further upside.

Why This Combination Matters

Growth stocks with strong technical setups often present favorable risk-reward scenarios. SHOPIFY’s fundamentals support continued expansion, while the chart suggests momentum may be building for a breakout.

For more stocks with similar characteristics, check our Strong Growth Stocks with Good Technical Setup Ratings screener.

For a deeper dive, review SHOPIFY’s full fundamental report and technical analysis.

Disclaimer

This is not investing advice. The observations are based on data available at the time of writing, and market conditions can change. Always conduct your own research before making investment decisions.