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Spotify (SPOT) Declines More Than Market: Some Information for Investors
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In the latest close session, Spotify (SPOT - Free Report) was down 3% at $514.37. The stock fell short of the S&P 500, which registered a loss of 0.08% for the day. Meanwhile, the Dow experienced a drop of 0.61%, and the technology-dominated Nasdaq saw an increase of 0.08%.
Heading into today, shares of the music-streaming service operator had gained 11.39% over the past month, outpacing the Computer and Technology sector's loss of 2.38% and the S&P 500's loss of 2.16%.
Market participants will be closely following the financial results of Spotify in its upcoming release. It is anticipated that the company will report an EPS of $3.68, marking a 225.66% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.37 billion, indicating a 21.93% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.64 per share and a revenue of $23.12 billion, signifying shifts of +31.54% and +18.98%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Spotify. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
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 has shifted 15.06% upward. As of now, Spotify holds a Zacks Rank of #3 (Hold).
Digging into valuation, Spotify currently has a Forward P/E ratio of 33.9. This denotes a premium relative to the industry average Forward P/E of 20.22.
It is also worth noting that SPOT currently has a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.15.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Spotify (SPOT) Declines More Than Market: Some Information for Investors
In the latest close session, Spotify (SPOT - Free Report) was down 3% at $514.37. The stock fell short of the S&P 500, which registered a loss of 0.08% for the day. Meanwhile, the Dow experienced a drop of 0.61%, and the technology-dominated Nasdaq saw an increase of 0.08%.
Heading into today, shares of the music-streaming service operator had gained 11.39% over the past month, outpacing the Computer and Technology sector's loss of 2.38% and the S&P 500's loss of 2.16%.
Market participants will be closely following the financial results of Spotify in its upcoming release. It is anticipated that the company will report an EPS of $3.68, marking a 225.66% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.37 billion, indicating a 21.93% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.64 per share and a revenue of $23.12 billion, signifying shifts of +31.54% and +18.98%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Spotify. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
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 has shifted 15.06% upward. As of now, Spotify holds a Zacks Rank of #3 (Hold).
Digging into valuation, Spotify currently has a Forward P/E ratio of 33.9. This denotes a premium relative to the industry average Forward P/E of 20.22.
It is also worth noting that SPOT currently has a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.15.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.