Spotify (SPOT - Free Report) closed the most recent trading day at $261.55, moving +1.53% from the previous trading session. This change outpaced the S&P 500's 0.15% loss on the day. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.47%.
Prior to today's trading, shares of the music-streaming service operator had gained 9.7% over the past month. This has outpaced the Business Services sector's loss of 9.05% and the S&P 500's gain of 3.19% in that time.
SPOT will be looking to display strength as it nears its next earnings release, which is expected to be October 29, 2020. In that report, analysts expect SPOT to post earnings of -$0.59 per share. This would mark a year-over-year decline of 243.9%. Our most recent consensus estimate is calling for quarterly revenue of $2.34 billion, up 18.83% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$3.45 per share and revenue of $9.29 billion. These totals would mark changes of -200% and +22.03%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SPOT. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SPOT is holding a Zacks Rank of #3 (Hold) right now.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 120, putting it in the top 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow SPOT in the coming trading sessions, be sure to utilize Zacks.com.