Is Spotify Technology (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. Is Spotify (SPOT) 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 our Business Services group, which includes 315 different companies and currently sits at #7 in 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Spotify is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for SPOT's full-year earnings has moved 61% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, SPOT has returned 43.9% so far this year. At the same time, Business Services stocks have gained an average of 10.2%. This means that Spotify is outperforming the sector as a whole this year.
Another stock in the Business Services sector, Trane Technologies (TT), has outperformed the sector so far this year. The stock's year-to-date return is 17.9%.
In Trane Technologies' case, the consensus EPS estimate for the current year increased 1.1% over the past three months. 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 174 individual companies and currently sits at #83 in the Zacks Industry Rank. On average, stocks in this group have gained 18.4% this year, meaning that SPOT is performing better in terms of year-to-date returns. Trane Technologies is also part of the same industry.
Investors with an interest in Business Services stocks should continue to track Spotify and Trane Technologies. These stocks will be looking to continue their solid performance.
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Spotify Technology (SPOT) : Free Stock Analysis Report
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