In the latest trading session, Spotify (SPOT) closed at $233.26, marking a -0.07% move from the previous day. This change lagged the S&P 500’s 0.96% gain on the day. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq lost 0.04%.
Prior to today’s trading, shares of the music-streaming service operator had lost 15.63% over the past month. This has lagged the Business Services sector’s loss of 5.01% and the S&P 500’s loss of 0.21% in that time.
Spotify will be looking to display strength as it nears its next earnings release. On that day, Spotify is projected to report earnings of -$0.44 per share, which would represent year-over-year growth of 44.3%. Meanwhile, our latest consensus estimate is calling for revenue of $3.08 billion, up 19.2% from the prior-year quarter.
SPOT’s full-year Zacks Consensus Estimates are calling for earnings of -$1.32 per share and revenue of $11.19 billion. These results would represent year-over-year changes of +62.71% and +24.21%, respectively.
Investors might also notice recent changes to analyst estimates for Spotify. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Spotify is holding a Zacks Rank of #3 (Hold) right now.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow SPOT in the coming trading sessions, be sure to utilize Zacks.com.
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