Why the high growth investor may take a look at NYSE:SPOT.

SPOTIFY TECHNOLOGY SA (NYSE:SPOT) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:SPOT.

Zooming in on the technicals.

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, SPOT scores 10 out of 10 in our technical rating. 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.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, SPOT did better than 95% of all other stocks. We also observe that the gains produced by SPOT over the past year are nicely spread over this period.
• SPOT is one of the better performing stocks in the Entertainment industry, it outperforms 94% of 72 stocks in the same industry.
• 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 362.31 - 397.19 range, which is quite wide. It is currently trading near the high of this range.

Check the latest full technical report of SPOT for a complete technical analysis.

How do we evaluate the setup for NYSE:SPOT?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:SPOT this score is currently 9:

Besides having an excellent technical rating, SPOT also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 385.09, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

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
• SPOTIFY TECHNOLOGY SA has seen a 33.9% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• In the most recent financial report, SPOTIFY TECHNOLOGY SA reported a 186.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• SPOTIFY TECHNOLOGY SA shows accelerating EPS growth: when comparing the current Q2Q growth of 186.0% to the previous year Q2Q growth of -82.35%, we see the growth rate improving.
• With positive growth in its operating margin over the past year, SPOTIFY TECHNOLOGY SA showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• SPOTIFY TECHNOLOGY SA has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• SPOTIFY TECHNOLOGY SA has a healthy Return on Equity(ROE) of 10.94%. This demonstrates the company's efficient utilization of capital and indicates its commitment to driving profitability.
• SPOTIFY TECHNOLOGY SA exhibits a favorable Debt-to-Equity ratio at 0.42. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• SPOTIFY TECHNOLOGY SA exhibits a favorable ownership structure, with an institutional shareholder ownership of 60.87%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.
• 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.
• The Relative Strength (RS) of SPOTIFY TECHNOLOGY SA has been consistently solid, with a current 95.98 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage. SPOTIFY TECHNOLOGY SA exhibits strong prospects for further price appreciation.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.