Spotify (SPOT) closed at $268.74 in the latest trading session, marking a +0.45% move from the prior day. This move outpaced the S&P 500's daily loss of 0.62%. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.94%.
Heading into today, shares of the music-streaming service operator had gained 0.03% over the past month, lagging the Business Services sector's gain of 2.51% and the S&P 500's gain of 3.51% in that time.
Wall Street will be looking for positivity from SPOT as it approaches its next earnings report date. This is expected to be July 29, 2020. In that report, analysts expect SPOT to post earnings of -$0.49 per share. This would mark a year-over-year decline of 4.26%. Our most recent consensus estimate is calling for quarterly revenue of $2.13 billion, up 13.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.76 per share and revenue of $8.85 billion. These totals would mark changes of -53.04% and +16.27%, respectively, from last year.
Any recent changes to analyst estimates for SPOT should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.94% lower within the past month. SPOT is currently a Zacks Rank #3 (Hold).
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 41% of all 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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