In the latest trading session, Spotify (SPOT - Free Report) closed at $238.55, marking a -1.26% move from the previous day. This move lagged the S&P 500's daily gain of 1.27%. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.87%.
Coming into today, shares of the music-streaming service operator had lost 4.75% in the past month. In that same time, the Business Services sector lost 1.17%, while the S&P 500 gained 0.37%.
Wall Street will be looking for positivity from SPOT as it approaches its next earnings report date. In that report, analysts expect SPOT to post earnings of -$0.72 per share. This would mark a year-over-year decline of 275.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.33 billion, up 18.35% from the year-ago period.
SPOT's full-year Zacks Consensus Estimates are calling for earnings of -$3.78 per share and revenue of $9.26 billion. These results would represent year-over-year changes of -228.7% and +21.73%, respectively.
It is also important to note the recent changes to analyst estimates for SPOT. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SPOT is currently sporting a Zacks Rank of #4 (Sell).
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 122, putting it in the top 49% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.