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Spotify (SPOT) Suffers a Larger Drop Than the General Market: Key Insights
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Spotify (SPOT - Free Report) closed the latest trading day at $300.98, indicating a -1.31% change from the previous session's end. This change lagged the S&P 500's 0.88% loss on the day. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq decreased by 1.95%.
Shares of the music-streaming service operator have depreciated by 3.33% over the course of the past month, underperforming the Business Services sector's gain of 0.29% and the S&P 500's gain of 5.11%.
The investment community will be paying close attention to the earnings performance of Spotify in its upcoming release. The company is slated to reveal its earnings on July 23, 2024. The company is forecasted to report an EPS of $1.10, showcasing a 165.09% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $4.1 billion, reflecting a 18.5% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.98 per share and revenue of $16.92 billion. These totals would mark changes of +268.81% and +18.09%, respectively, from last year.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.46% higher. Right now, Spotify possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Spotify is currently trading at a Forward P/E ratio of 61.3. This represents a premium compared to its industry's average Forward P/E of 22.67.
It is also worth noting that SPOT currently has a PEG ratio of 0.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Technology Services stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 37% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Spotify (SPOT) Suffers a Larger Drop Than the General Market: Key Insights
Spotify (SPOT - Free Report) closed the latest trading day at $300.98, indicating a -1.31% change from the previous session's end. This change lagged the S&P 500's 0.88% loss on the day. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq decreased by 1.95%.
Shares of the music-streaming service operator have depreciated by 3.33% over the course of the past month, underperforming the Business Services sector's gain of 0.29% and the S&P 500's gain of 5.11%.
The investment community will be paying close attention to the earnings performance of Spotify in its upcoming release. The company is slated to reveal its earnings on July 23, 2024. The company is forecasted to report an EPS of $1.10, showcasing a 165.09% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $4.1 billion, reflecting a 18.5% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.98 per share and revenue of $16.92 billion. These totals would mark changes of +268.81% and +18.09%, respectively, from last year.
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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.46% higher. Right now, Spotify possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Spotify is currently trading at a Forward P/E ratio of 61.3. This represents a premium compared to its industry's average Forward P/E of 22.67.
It is also worth noting that SPOT currently has a PEG ratio of 0.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Technology Services stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 37% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.