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Spotify (SPOT) Dips More Than Broader Market: What You Should Know
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Spotify (SPOT - Free Report) ended the recent trading session at $546.70, demonstrating a -2.07% change from the preceding day's closing price. This change lagged the S&P 500's 0.45% loss on the day. Elsewhere, the Dow lost 1.21%, while the tech-heavy Nasdaq lost 0.01%.
Heading into today, shares of the music-streaming service operator had gained 8.13% over the past month, outpacing the Computer and Technology sector's loss of 1.9% and the S&P 500's loss of 2.43%.
The investment community will be closely monitoring the performance of Spotify in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $3.26, reflecting a 14.88% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $5.77 billion, indicating a 15.49% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.29 per share and revenue of $22.61 billion. These totals would mark changes of +20.19% and +16.33%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Spotify. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.04% lower. Spotify currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Spotify is currently trading at a Forward P/E ratio of 39.07. This denotes a premium relative to the industry average Forward P/E of 20.36.
Meanwhile, SPOT's PEG ratio is currently 1.64. 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. The Internet - Software industry had an average PEG ratio of 1.14 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 37% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Spotify (SPOT) Dips More Than Broader Market: What You Should Know
Spotify (SPOT - Free Report) ended the recent trading session at $546.70, demonstrating a -2.07% change from the preceding day's closing price. This change lagged the S&P 500's 0.45% loss on the day. Elsewhere, the Dow lost 1.21%, while the tech-heavy Nasdaq lost 0.01%.
Heading into today, shares of the music-streaming service operator had gained 8.13% over the past month, outpacing the Computer and Technology sector's loss of 1.9% and the S&P 500's loss of 2.43%.
The investment community will be closely monitoring the performance of Spotify in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $3.26, reflecting a 14.88% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $5.77 billion, indicating a 15.49% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.29 per share and revenue of $22.61 billion. These totals would mark changes of +20.19% and +16.33%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Spotify. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.04% lower. Spotify currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Spotify is currently trading at a Forward P/E ratio of 39.07. This denotes a premium relative to the industry average Forward P/E of 20.36.
Meanwhile, SPOT's PEG ratio is currently 1.64. 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. The Internet - Software industry had an average PEG ratio of 1.14 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 37% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.