Shopify (SHOP) Versus Synopsys (SNPS): A Comparison of Tech Stock Performances in the Current Year

For investors keen on navigating the Computer and Technology sector, identifying top performers is crucial. At the forefront of this industry are companies like Shopify SHOP and Synopsys SNPS, which have shown remarkable performance relative to their sector this year.

Shopify's Stance in the Tech Sector

Shopify Inc. functions within the ever-evolving Computer and Technology sector that encompasses a diverse range of 625 companies. Notably, Shopify is categorized under the Internet - Services industry, a subset of 40 individual stocks. This group itself has soared, clocking in an average increase of 46.5% year-to-date. Consequently, Shopify's advancement is eye-catching as it has surpassed the industry average with an impressive year-to-date surge of 73.9%. The company, which specializes in providing a comprehensive commerce and service platform internationally, has reinforced its status with a Zacks Rank of #2 (Buy), suggesting robust growth potential.

Further indication of Shopify's lucrative trajectory can be observed through the Zacks Consensus Estimate for full-year earnings, which has escalated by 96% over the preceding 90 days. This development underpins a heightened optimism among analysts and a promising earnings outlook for the Ottawa-based commerce platform provider.

Synopsys at a Glance

On the flip side, Synopsys SNPS, an American multinational renowned for its electronic design automation services, including logic synthesis and hardware description language simulators, has also outshined the broader sector. With its stocks appreciating by 58.2% since the beginning of the year, Synopsys is outperforming the average sector growth of 39%. Synopsys nestles within the Computer - Software industry, which comprises 37 stocks and has realized a year-to-date growth of 48.1%.

The positive sentiment around Synopsys is undergirded by a 7.6% rise in the consensus EPS estimate for the current year over the past quarter. This upward trend solidifies Synopsys' status as a desirable investment with a Zacks Rank of #2 (Buy), mirroring its strong fundamentals and growth prospects.

Investment Outcomes

Both Shopify and Synopsys showcase an upward stride in the Computer and Technology sector, surpassing the performance of many of their industry counterparts. Investors searching for robust tech stock options would do well to monitor the ongoing trajectory of these two entities. The evidence of their outpacing of industry averages, paired with bullish analyst sentiment and improved earnings forecasts, positions them as prospective outperformers in the near future.

Shopify, Synopsys, Technology