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Spotify (SPOT) Ascends While Market Falls: Some Facts to Note
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In the latest close session, Spotify (SPOT - Free Report) was up +1.39% at $503.10. The stock's performance was ahead of the S&P 500's daily loss of 1.62%. Meanwhile, the Dow experienced a drop of 1.87%, and the technology-dominated Nasdaq saw a decrease of 1.98%.
Shares of the music-streaming service operator witnessed a gain of 14.67% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.74%, and the S&P 500's loss of 0.03%.
Investors will be eagerly watching for the performance of Spotify in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.31, signifying a 789.58% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.6 billion, up 17.66% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.72 per share and revenue of $22.77 billion. These totals would mark changes of +23.8% and +17.15%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Spotify. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been a 0.99% fall in the Zacks Consensus EPS estimate. Currently, Spotify is carrying a Zacks Rank of #3 (Hold).
Investors should also note Spotify's current valuation metrics, including its Forward P/E ratio of 33.71. This valuation marks a premium compared to its industry average Forward P/E of 18.47.
Meanwhile, SPOT's PEG ratio is currently 1.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.03 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% 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.
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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Spotify (SPOT) Ascends While Market Falls: Some Facts to Note
In the latest close session, Spotify (SPOT - Free Report) was up +1.39% at $503.10. The stock's performance was ahead of the S&P 500's daily loss of 1.62%. Meanwhile, the Dow experienced a drop of 1.87%, and the technology-dominated Nasdaq saw a decrease of 1.98%.
Shares of the music-streaming service operator witnessed a gain of 14.67% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.74%, and the S&P 500's loss of 0.03%.
Investors will be eagerly watching for the performance of Spotify in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.31, signifying a 789.58% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.6 billion, up 17.66% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.72 per share and revenue of $22.77 billion. These totals would mark changes of +23.8% and +17.15%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Spotify. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been a 0.99% fall in the Zacks Consensus EPS estimate. Currently, Spotify is carrying a Zacks Rank of #3 (Hold).
Investors should also note Spotify's current valuation metrics, including its Forward P/E ratio of 33.71. This valuation marks a premium compared to its industry average Forward P/E of 18.47.
Meanwhile, SPOT's PEG ratio is currently 1.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.03 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.