The latest trading session saw Spotify (SPOT) ending at $454.16, denoting a +1.23% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.09%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.1%.
Prior to today's trading, shares of the music-streaming service operator had lost 4.54% over the past month. This has lagged the Business Services sector's loss of 1.09% and the S&P 500's loss of 0.29% in that time.
The upcoming earnings release of Spotify will be of great interest to investors. The company's upcoming EPS is projected at $2.01, signifying a 615.38% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.4 billion, indicating a 11.24% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.02 per share and a revenue of $16.52 billion, signifying shifts of +304.07% and +15.31%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Spotify. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Spotify presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Spotify currently has a Forward P/E ratio of 74.54. This denotes a premium relative to the industry's average Forward P/E of 26.96.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% echelons of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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