SPOTIFY TECHNOLOGY SA (NYSE:SPOT) is a candidate for high growth investors. Here's why.

A possible breakout setup was detected on SPOTIFY TECHNOLOGY SA (NYSE:SPOT) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:SPOT.

Insights from Technical Analysis

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of 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 gets the benefit of the doubt for now.
• When comparing the yearly performance of all stocks, we notice that SPOT is one of the better performing stocks in the market, outperforming 95% 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.
• In the last month SPOT has a been trading in the 443.21 - 490.67 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present 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. There is a support zone below the current price at 456.47, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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
• The average next Quarter EPS Estimate by analysts was adjusted by 36.92%, reflecting the evolving market expectations for the company's EPS growth.
• The quarterly earnings of SPOTIFY TECHNOLOGY SA have shown a 339.0% 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 339.0% exceeds the previous year Q2Q growth of 133.0%.
• SPOTIFY TECHNOLOGY SA has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• 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.
• SPOTIFY TECHNOLOGY SA showcases a robust Return on Equity (ROE) of 15.13%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• Maintaining a Debt-to-Equity ratio of 0.39, SPOTIFY TECHNOLOGY SA demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• 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 surpassed EPS estimates 3 times 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 95.56 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.

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

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.