Is Spotify Technology SA (SPOT) Stock Outpacing Its Business Services Peers This Year?
The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Spotify Technology SA (SPOT) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of SPOT and the rest of the Business Services group's stocks.
Spotify Technology SA is one of 191 companies in the Business Services group. The Business Services group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. SPOT is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for SPOT's full-year earnings has moved 59.43% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, SPOT has returned 30.82% so far this year. Meanwhile, the Business Services sector has returned an average of 24.78% on a year-to-date basis. This means that Spotify Technology SA is outperforming the sector as a whole this year.
Breaking things down more, SPOT is a member of the Technology Services industry, which includes 55 individual companies and currently sits at #92 in the Zacks Industry Rank. Stocks in this group have gained about 9.74% so far this year, so SPOT is performing better this group in terms of year-to-date returns.
Going forward, investors interested in Business Services stocks should continue to pay close attention to SPOT as it looks to continue its solid performance.
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