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Is Spotify Technology SA (SPOT) Stock Outpacing Its Business Services Peers This Year?

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Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has Spotify Technology SA (SPOT - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Spotify Technology SA is one of 189 individual stocks in the Business Services sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. SPOT is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for SPOT's full-year earnings has moved 65.62% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, SPOT has gained about 6.17% so far this year. Meanwhile, the Business Services sector has returned an average of 1.53% on a year-to-date basis. This means that Spotify Technology SA is outperforming the sector as a whole this year.

Looking more specifically, SPOT belongs to the Technology Services industry, a group that includes 54 individual stocks and currently sits at #106 in the Zacks Industry Rank. Stocks in this group have gained about 3.25% so far this year, so SPOT is performing better this group in terms of year-to-date returns.

Investors with an interest in Business Services stocks should continue to track SPOT. The stock will be looking to continue its solid performance.


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