Should you consider SPOTIFY TECHNOLOGY SA (NYSE:SPOT) for high growth investing?

We've identified SPOTIFY TECHNOLOGY SA (NYSE:SPOT) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NYSE:SPOT for further developments.

Zooming in on the technicals.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall SPOT gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, SPOT is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that SPOT is one of the better performing stocks in the market, outperforming 97% of all stocks. We also observe that the gains produced by SPOT over the past year are nicely spread over this period.
• SPOT is part of the Entertainment industry. There are 72 other stocks in this industry. SPOT outperforms 97% of them.
• SPOT is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month SPOT has a been trading in the 337.13 - 389.23 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of SPOT

How does the Setup look for NYSE:SPOT

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:SPOT currently has a 7 as setup rating:

SPOT has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price.

Why NYSE:SPOT may be interesting for high growth investors.

• The recent financial report of SPOTIFY TECHNOLOGY SA demonstrates a 186.0% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• Analysts' average next Quarter EPS Estimate for SPOTIFY TECHNOLOGY SA has witnessed a 36.91% change in the last 3 months, underscoring the dynamic nature of market sentiment towards the company's EPS prospects.
• The quarterly earnings of SPOTIFY TECHNOLOGY SA have shown a 186.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• accelerating EPS growth for SPOTIFY TECHNOLOGY SA: the current Q2Q growth of 186.0% exceeds the previous year Q2Q growth of -82.35%.
• With a favorable trend in its operating margin over the past year, SPOTIFY TECHNOLOGY SA demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• The free cash flow (FCF) of SPOTIFY TECHNOLOGY SA has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• The Return on Equity(ROE) of SPOTIFY TECHNOLOGY SA is 10.94%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• With a current Debt-to-Equity ratio at 0.42, SPOTIFY TECHNOLOGY SA showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• With institutional shareholders at 60.16%, SPOTIFY TECHNOLOGY SA demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• SPOTIFY TECHNOLOGY SA has consistently surpassed EPS estimates in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.
• SPOTIFY TECHNOLOGY SA has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 97.26 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning. SPOTIFY TECHNOLOGY SA is well-positioned for potential price growth opportunities.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.