SHOPIFY INC - CLASS A (NASDAQ:SHOP): A Strong Growth Stock Meeting Minervini's Criteria

SHOPIFY INC - CLASS A (NASDAQ:SHOP) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template. The company’s strong technical setup and accelerating fundamentals make it a candidate worth examining for growth-oriented investors.

Why SHOP Meets Minervini’s Trend Template

Minervini’s strategy focuses on stocks exhibiting strong uptrends with improving fundamentals. SHOP checks several key technical boxes:

• Price Above Key Moving Averages: SHOP is trading above its 50-day ($109.65), 150-day ($106.21), and 200-day ($102.82) moving averages, confirming a bullish trend.
• Upward-Sloping Averages: Both the 150-day and 200-day moving averages are rising, indicating sustained upward momentum.
• Relative Strength: With a ChartMill Relative Strength (CRS) of 94.85, SHOP outperforms nearly 95% of the market.
• Price Near 52-Week High: At $127.07, SHOP is within 2% of its 52-week high ($129.38), a sign of strong momentum.
• Significant Recovery: The stock has surged 101% over the past year, well above its 52-week low ($48.56).

High Growth Fundamentals

Beyond technicals, SHOP demonstrates strong growth metrics:

• Revenue Growth: Quarterly sales growth of 26.8% YoY, with consistent acceleration in recent quarters.
• Earnings Expansion: EPS grew 35.9% over the past year, with recent quarterly growth at 25%.
• Profitability Improvement: After past volatility, SHOP has stabilized margins, with a trailing twelve-month (TTM) profit margin of 22.7%.
• Free Cash Flow Surge: FCF per share soared 5,680% YoY, reflecting improved operational efficiency.

Technical Report Summary

ChartMill’s technical analysis assigns SHOP a perfect 10/10 rating, citing its strong uptrend and market leadership. However, the setup rating is currently low (2/10) due to extended price levels, suggesting investors may want to wait for a pullback or consolidation before entering.

For a deeper dive into SHOP’s technicals, review the full technical report here.

Our High Growth Momentum + Trend Template screener lists more stocks with similar growth and trend characteristics.

Disclaimer

This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.