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Here's Why Spotify (SPOT) Fell More Than Broader Market
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Spotify (SPOT - Free Report) closed at $482.52 in the latest trading session, marking a -6.62% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.44%, and the technology-centric Nasdaq decreased by 0.28%.
The music-streaming service operator's stock has climbed by 8.2% in the past month, exceeding the Computer and Technology sector's loss of 2.12% and the S&P 500's loss of 3.59%.
The investment community will be paying close attention to the earnings performance of Spotify in its upcoming release. The company is expected to report EPS of $3.68, up 225.66% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.37 billion, up 21.93% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.64 per share and a revenue of $23.12 billion, indicating changes of +31.54% and +18.98%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Spotify. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.35% increase. Spotify is currently a Zacks Rank #3 (Hold).
In terms of valuation, Spotify is currently trading at a Forward P/E ratio of 33.04. This signifies a premium in comparison to the average Forward P/E of 19.27 for its industry.
We can additionally observe that SPOT currently boasts a PEG ratio of 1.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.09 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Here's Why Spotify (SPOT) Fell More Than Broader Market
Spotify (SPOT - Free Report) closed at $482.52 in the latest trading session, marking a -6.62% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.44%, and the technology-centric Nasdaq decreased by 0.28%.
The music-streaming service operator's stock has climbed by 8.2% in the past month, exceeding the Computer and Technology sector's loss of 2.12% and the S&P 500's loss of 3.59%.
The investment community will be paying close attention to the earnings performance of Spotify in its upcoming release. The company is expected to report EPS of $3.68, up 225.66% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.37 billion, up 21.93% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.64 per share and a revenue of $23.12 billion, indicating changes of +31.54% and +18.98%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Spotify. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.35% increase. Spotify is currently a Zacks Rank #3 (Hold).
In terms of valuation, Spotify is currently trading at a Forward P/E ratio of 33.04. This signifies a premium in comparison to the average Forward P/E of 19.27 for its industry.
We can additionally observe that SPOT currently boasts a PEG ratio of 1.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.09 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.