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 a candidate worth examining further.

Growth Fundamentals

• Strong Revenue & Earnings Growth: SHOP has demonstrated impressive growth, with revenue increasing by 26.52% over the past year and earnings per share (EPS) growing by 35.87%. Long-term trends are even stronger, with EPS expanding at an average annual rate of 70.21%.
• High Growth Rating: The stock earns a 9/10 in ChartMill’s Growth Rating, reflecting its ability to outperform peers in the IT Services industry.
• Profitability & Financial Health: Despite a slightly lower profitability score (6/10), SHOP maintains excellent financial health (9/10), with no debt and strong liquidity metrics.

Technical Setup

• Positive Trends: Both short-term and long-term trends are bullish, with the stock trading near the upper end of its 52-week range.
• Consolidation & Breakout Potential: SHOP has been consolidating in a range between $103.91 and $118.35, presenting a potential breakout opportunity. Resistance sits near $114.37–$116.66, while support is found around $110.97–$112.10.
• High Relative Strength: The stock outperforms 92% of the broader market and 83% of its industry peers over the past year.

Why This Combination Matters

Growth stocks with strong technical setups often attract momentum investors. SHOP’s fundamentals suggest sustained expansion, while the recent price action indicates potential for further upside if resistance levels are breached.

For more details, review the full fundamental analysis and technical analysis reports.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.