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

SPOTIFY TECHNOLOGY SA (NYSE:SPOT) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NYSE:SPOT.

What is the technical picture of NYSE:SPOT telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 9 out of 10 to SPOT. 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 short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• Looking at the yearly performance, SPOT did better than 97% of all other stocks. On top of that, SPOT also shows a nice and consistent pattern of rising prices.
• SPOT is one of the better performing stocks in the Entertainment industry, it outperforms 94% of 71 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.

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

How do we evaluate the setup for NYSE:SPOT?

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. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 586.82, a Stop Loss order could be placed below this zone.

Some of the high growth metrics of NYSE:SPOT highlighted

• In the most recent financial report, SPOTIFY TECHNOLOGY SA reported a 376.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• The average next Quarter EPS Estimate by analysts was adjusted by 14.23%, reflecting the evolving market expectations for the company's EPS growth.
• The recent financial report of SPOTIFY TECHNOLOGY SA demonstrates a 376.0% 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 376.0% is above the previous year Q2Q growth of 126.0%. 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.
• With positive growth in its free cash flow (FCF) over the past year, SPOTIFY TECHNOLOGY SA showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• With a solid Return on Equity (ROE) of 20.6%, SPOTIFY TECHNOLOGY SA exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• SPOTIFY TECHNOLOGY SA exhibits a favorable Debt-to-Equity ratio at 0.36. 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.
• With 67.74% of the total shares held by institutional investors, SPOTIFY TECHNOLOGY SA showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• The Relative Strength (RS) of SPOTIFY TECHNOLOGY SA has been consistently solid, with a current 97.18 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

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.