Spotify (SPOT) closed the most recent trading day at $472.48, moving +2.91% from the previous trading session. This change outpaced the S&P 500's 0.22% loss on the day. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.66%.
The music-streaming service operator's stock has dropped by 8.45% in the past month, falling short of the Computer and Technology sector's loss of 2.58% and the S&P 500's loss of 1.21%.
Investors will be eagerly watching for the performance of Spotify in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 4, 2026. The company's earnings per share (EPS) are projected to be $3.3, reflecting a 787.5% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.6 billion, indicating a 17.66% increase compared to the same quarter of the previous year.
SPOT's full-year Zacks Consensus Estimates are calling for earnings of $14.64 per share and revenue of $22.67 billion. These results would represent year-over-year changes of +23.13% and +16.66%, respectively.
Investors should also note any recent changes to analyst estimates for Spotify. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.35% fall in the Zacks Consensus EPS estimate. At present, Spotify boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Spotify currently has a Forward P/E ratio of 31.36. This represents a premium compared to its industry average Forward P/E of 19.05.
Investors should also note that SPOT has a PEG ratio of 1.13 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.06.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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This article originally published on Zacks Investment Research (zacks.com).