Spotify (SPOT – Free Report) ended the recent trading session at $457.98, demonstrating a -0.79% swing from the preceding day’s closing price. The stock fell short of the S&P 500, which registered a loss of 0.04% for the day. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq lost 0.05%.
Shares of the music-streaming service operator have depreciated by 2.86% over the course of the past month, underperforming the Business Services sector’s loss of 1.59% and the S&P 500’s gain of 1.05%.
Investors will be eagerly watching for the performance of Spotify in its upcoming earnings disclosure. The company is expected to report EPS of $2.01, up 615.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.4 billion, up 11.24% from the year-ago period.
SPOT’s full-year Zacks Consensus Estimates are calling for earnings of $6.02 per share and revenue of $16.52 billion. These results would represent year-over-year changes of +304.07% and +15.31%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Spotify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Spotify is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Spotify is currently trading at a Forward P/E ratio of 76.7. This valuation marks a premium compared to its industry’s average Forward P/E of 26.09.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Financial Market Newsflash
No financial news published today. Check back later.
