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Spotify (SPOT) Beats Stock Market Upswing: What Investors Need to Know
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In the latest close session, Spotify (SPOT - Free Report) was up +2.74% at $468.08. This move outpaced the S&P 500's daily gain of 1.09%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 1.91%.
The music-streaming service operator's stock has climbed by 5.14% in the past month, exceeding the Computer and Technology sector's gain of 0.22% and the S&P 500's gain of 0.29%.
Market participants will be closely following the financial results of Spotify in its upcoming release. The company's upcoming EPS is projected at $3.3, signifying a 787.50% 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.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.68 per share and revenue of $22.73 billion, which would represent changes of +23.47% and +16.98%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Spotify. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.32% lower. At present, Spotify boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Spotify currently has a Forward P/E ratio of 31.04. This signifies a premium in comparison to the average Forward P/E of 18.05 for its industry.
Investors should also note that SPOT has a PEG ratio of 1.11 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Spotify (SPOT) Beats Stock Market Upswing: What Investors Need to Know
In the latest close session, Spotify (SPOT - Free Report) was up +2.74% at $468.08. This move outpaced the S&P 500's daily gain of 1.09%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 1.91%.
The music-streaming service operator's stock has climbed by 5.14% in the past month, exceeding the Computer and Technology sector's gain of 0.22% and the S&P 500's gain of 0.29%.
Market participants will be closely following the financial results of Spotify in its upcoming release. The company's upcoming EPS is projected at $3.3, signifying a 787.50% 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.
For the full year, the Zacks Consensus Estimates are projecting earnings of $14.68 per share and revenue of $22.73 billion, which would represent changes of +23.47% and +16.98%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Spotify. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.32% lower. At present, Spotify boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Spotify currently has a Forward P/E ratio of 31.04. This signifies a premium in comparison to the average Forward P/E of 18.05 for its industry.
Investors should also note that SPOT has a PEG ratio of 1.11 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.