Spotify (SPOT) Suffers a Larger Drop Than the General Market: Key Insights
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Spotify (SPOT) ended the recent trading session at $566.23, demonstrating a -2.22% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.16% for the day. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 1.81%. The stock of music-streaming service operator has fallen by 9.02% in the past month, lagging the Computer and Technology sector's gain of 1% and the S&P 500's gain of 1.03%.Analysts and investors alike will be keeping a close eye on the performance of Spotify in its upcoming earnings disclosure. On that day, Spotify is projected to report earnings of $3.11 per share, which would represent year-over-year growth of 65.43%. Alongside, our most recent consensus estimate is anticipating revenue of $5.2 billion, indicating a 14.97% upward movement from the same quarter last year. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.72 per share and a revenue of $19.78 billion, indicating changes of +29.75% and +16.69%, respectively, from the former year. Investors should also note any recent changes to analyst estimates for Spotify. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Spotify possesses a Zacks Rank of #3 (Hold). In terms of valuation, Spotify is presently being traded at a Forward P/E ratio of 75.04. This denotes a premium relative to the industry average Forward P/E of 28.79. Investors should also note that SPOT has a PEG ratio of 1.91 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.88. The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 55, positioning it in the top 23% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Spotify Technology (SPOT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
Quelle: Zacks
