Spotify (SPOT) Is Up 13.57% in One Week: What You Should Know

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Analysis: Spotify (SPOT) - Spotify currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [4]. - Over the past week, Spotify's shares have increased by 13.57%, while the Zacks Technology Services industry remained flat [6]. - In a longer timeframe, Spotify's shares have risen by 35.93% over the past quarter and 158.75% over the last year, significantly outperforming the S&P 500, which increased by only 1.24% and 22.19% respectively [7]. Trading Volume - Spotify's average 20-day trading volume is 2,144,347 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the past two months, 5 earnings estimates for Spotify have been revised upwards, while only 2 have been revised downwards, leading to an increase in the consensus estimate from $8.82 to$10.30 [10]. - For the next fiscal year, 5 estimates have moved upwards with no downward revisions, indicating positive earnings momentum [10]. Conclusion - Considering the strong momentum indicators and positive earnings outlook, Spotify is identified as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [12].