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Spotify (SPOT) closed the latest trading day at $514.31, indicating a +0.76% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 1.46%. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, lost 3.07%.
The the stock of music-streaming service operator has risen by 11.82% in the past month, leading the Business Services sector's gain of 0.87% and the S&P 500's gain of 1.08%.
The investment community will be closely monitoring the performance of Spotify in its forthcoming earnings report. The company is scheduled to release its earnings on February 4, 2025. The company is predicted to post an EPS of $1.91, indicating a 589.74% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, up 10.39% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Spotify. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.7% lower. At present, Spotify boasts a Zacks Rank of #3 (Hold).
Investors should also note Spotify's current valuation metrics, including its Forward P/E ratio of 57.9. This expresses a premium compared to the average Forward P/E of 23.98 of its industry.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.