Shopify stock saw a positive improvement to its Relative Strength (RS) Rating on Wednesday, rising from 69 to 78.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's proprietary RS Rating identifies technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the last 52 weeks compares to the rest of the market.
Decades of market research shows that the best stocks typically have an RS Rating north of 80 as they begin their largest price moves. See if Shopify stock can continue to rebound and hit that benchmark.
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Is Shopify Stock A Buy?
While Shopify stock is not near a proper buying range right now, see if it goes on to form and break out of a proper consolidation. At this time, be cautious adding stocks when the stock market outlook is under pressure. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
While earnings growth dropped in the company's most recent performance report from 0% to -50%, the top line rose 26%, up from 22% in the previous report.
Shopify stock earns the No. 34 rank among its peers in the Computer Software-Enterprise industry group. Model N and Asure Software are also among the group's highest-rated stocks.
