Spotify (SPOT) Outpaces Stock Market Gains: What You Should Know

The latest trading session saw Spotify (SPOT) ending at $460.88, denoting a +1.48% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 1.09%. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.03%.Shares of the music-streaming service operator have depreciated by 3.51% over the course of the past month, underperforming the Business Services sector's loss of 1.51% and the S&P 500's loss of 0.71%.The investment community will be paying close attention to the earnings performance of Spotify in its upcoming release. The company is predicted to post an EPS of $2.01, indicating a 615.38% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.4 billion, up 11.24% from the prior-year quarter.For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.02 per share and a revenue of $16.52 billion, signifying shifts of +304.07% and +15.31%, respectively, from the last year.Investors might also notice recent changes to analyst estimates for Spotify. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.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 past month, the Zacks Consensus EPS estimate has remained steady. At present, Spotify boasts a Zacks Rank of #3 (Hold).Looking at its valuation, Spotify is holding a Forward P/E ratio of 75.46. For comparison, its industry has an average Forward P/E of 26.61, which means Spotify is trading at a premium to the group.The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% of all 250+ industries.The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks