Why NYSE:SPOT qualifies as a high growth stock.

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.

Deciphering the Technical Picture of NYSE:SPOT

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various 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 96% 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 part of the Entertainment industry. There are 72 other stocks in this industry. SPOT outperforms 94% 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.
• SPOT is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up.

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

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:SPOT has a 7 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, SPOT also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 480.28. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 480.26, a Stop Loss order could be placed below this zone.

Some of the high growth metrics of NYSE:SPOT highlighted

• The recent financial report of SPOTIFY TECHNOLOGY SA demonstrates a 339.0% 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 36.92% 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.
• The recent financial report of SPOTIFY TECHNOLOGY SA demonstrates a 339.0% 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
• The earnings per share (EPS) growth of SPOTIFY TECHNOLOGY SA are accelerating: the current Q2Q growth of 339.0% is above the previous year Q2Q growth of 133.0%. Earnings momentum and acceleration are key for high growth systems.
• 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.
• SPOTIFY TECHNOLOGY SA has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• The Return on Equity(ROE) of SPOTIFY TECHNOLOGY SA is 15.13%, 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 Debt-to-Equity ratio at 0.39, SPOTIFY TECHNOLOGY SA showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• With institutional shareholders at 64.92%, 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 exceeded EPS estimates 3 times in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.
• The Relative Strength (RS) of SPOTIFY TECHNOLOGY SA has consistently been strong, with a current 96.48 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. SPOTIFY TECHNOLOGY SA demonstrates promising potential for sustained price momentum.

Our High Growth Momentum Breakout screen will find you more ideas suited for high growth momentum breakouts.

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.