Evaluating NYSE:SPOT for high Growth Investment Opportunities.

Our stock screener has detected a potential breakout setup on SPOTIFY TECHNOLOGY SA (NYSE:SPOT). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:SPOT.

Technical Analysis Observations

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

Taking everything into account, SPOT scores 9 out of 10 in our technical rating. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• When comparing the yearly performance of all stocks, we notice that SPOT is one of the better performing stocks in the market, outperforming 96% of all 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 95% of 72 stocks in the same industry.
• SPOT is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so SPOT is performing more or less in line with the market.

Our latest full technical report of SPOT contains the most current technical analsysis.

How do we evaluate the setup for NYSE:SPOT?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:SPOT is 8:

SPOT has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 456.28, a Stop Loss order could be placed below this zone.

Looking into the high growth metrics of SPOTIFY TECHNOLOGY SA

• SPOTIFY TECHNOLOGY SA has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 339.0% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• The average next Quarter EPS Estimate for SPOTIFY TECHNOLOGY SA has experienced a 36.92% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
• 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 shows accelerating EPS growth: when comparing the current Q2Q growth of 339.0% to the previous year Q2Q growth of 133.0%, we see the growth rate improving.
• The operating margin of SPOTIFY TECHNOLOGY SA has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• With a favorable trend in its free cash flow (FCF) over the past year, SPOTIFY TECHNOLOGY SA demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• SPOTIFY TECHNOLOGY SA exhibits a strong Return on Equity (ROE) of 15.13%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• SPOTIFY TECHNOLOGY SA exhibits a favorable Debt-to-Equity ratio at 0.39. 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 62.42%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.
• 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.
• SPOTIFY TECHNOLOGY SA has achieved an impressive Relative Strength (RS) rating of 96.36, showcasing its ability to outperform the broader market. This strong performance positions SPOTIFY TECHNOLOGY SA as an attractive stock for potential price appreciation.

More high growth momentum breakout stocks can be found 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.