The latest trading session saw Spotify (SPOT) ending at $551.73, denoting a +0.31% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.38%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.87%.

The music-streaming service operator's shares have seen a decrease of 8.31% over the last month, surpassing the Computer and Technology sector's loss of 8.94% and falling behind the S&P 500's loss of 5.59%.

Market participants will be closely following the financial results of Spotify in its upcoming release. The company plans to announce its earnings on April 29, 2025. It is anticipated that the company will report an EPS of $2.29, marking a 118.1% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.38 billion, reflecting a 10.9% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.23 per share and revenue of $18.85 billion, indicating changes of +71.93% and +11.21%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Spotify. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Spotify presently features a Zacks Rank of #2 (Buy).

With respect to valuation, Spotify is currently being traded at a Forward P/E ratio of 53.75. This signifies a premium in comparison to the average Forward P/E of 26.28 for its industry.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 30% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 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).

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