Building an investment portfolio from scratch can be difficult, especially if you're new to investing. It's easy to feel overwhelmed with so many different investment options out there, but focusing on stocks that are set to outperform the market over the next 12 months is an excellent place to start.

Now, let's break down why adding this one exceptional stock, highlighted below, to your portfolio could be a recipe for success.

Ottawa, Canada-based Shopify Inc. is a leading global commerce platform that helps in starting, scaling, marketing, and running a business of any size. Its platform and services are engineered for simplicity and reliability, while delivering a better shopping experience for customers everywhere.

On September 6, 2022, SHOP was added to the Zacks Focus List at $29.94 per share. Shares have increased 381.86% to $144.27 since then.

Nine analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.04 to $1.44. SHOP boasts an average earnings surprise of 13.6%.

Additionally, Shopify's earnings are expected to grow 10.8% for the current fiscal year.

Since stock prices respond to earnings estimate revisions, it can be very profitable to buy stocks with an increased earnings outlook. By buying a Focus List stock like SHOP, then, you're likely getting into a company whose future earnings estimates will be raised, potentially leading to price momentum.

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Shopify Inc. (SHOP) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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