Back to top

Image: Bigstock

Is Spotify Technology (SPOT) Outperforming Other Business Services Stocks This Year?

Read MoreHide Full Article

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Spotify (SPOT - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

Spotify is a member of the Business Services sector. This group includes 318 individual stocks and currently holds a Zacks Sector Rank of #6. 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Spotify is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for SPOT's full-year earnings has moved 22.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that SPOT has returned about 148% since the start of the calendar year. Meanwhile, stocks in the Business Services group have gained about 16.7% on average. This means that Spotify is performing better than its sector in terms of year-to-date returns.

SPX Technologies (SPXC - Free Report) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 34.4%.

Over the past three months, SPX Technologies' consensus EPS estimate for the current year has increased 0.9%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Spotify belongs to the Technology Services industry, a group that includes 176 individual companies and currently sits at #86 in the Zacks Industry Rank. On average, this group has gained an average of 39.2% so far this year, meaning that SPOT is performing better in terms of year-to-date returns. SPX Technologies is also part of the same industry.

Investors interested in the Business Services sector may want to keep a close eye on Spotify and SPX Technologies as they attempt to continue their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


SPX Technologies, Inc. (SPXC) - free report >>

Spotify Technology (SPOT) - free report >>

Published in