Is It Overvalued? Look at the P/S Ratio: Spotify Technology S.A. (SPOT), Continental Resources Inc. (CLR)

You should consider shares of Spotify Technology S.A. (NYSE:SPOT) and Continental Resources Inc. (NYSE:CLR) if you are looking for a great stocks to invest in. Starting with the SPOT shares, which traded at $154.31 at the close of the recent session, gaining 5.33%. On Tuesday, the company’s shares shed $7.81 from its value which represented in intraday trading. The stock is now 3.18% higher in year-to-date (YTD) trading. SPOT’s intraday high was $156.00 while its lowest price touched $148.6471. The stock’s 52-week high price is $161.38, which means the current price is at -4.38%. In terms of trading activity, the daily trading volume rose to 3152601 against 200-day average trading volume of 1,456,379 shares.

What are analyst forecasts for Spotify Technology S.A. (NYSE:SPOT)?

At a consensus rating of 3.60, SPOT is trending as a streaking Moderate Buy, as it has been the case a month ago when 15 analysts called it a Moderate Buy. Two months ago, 15 analysts recommended, on average, that SPOT stock is a Moderate Buy. The Services company’s shares’ overall bullish trend saw it close lower on Tuesday compared to its opening price of $149.05 on the day.

Forecasts for Spotify Technology S.A. (NYSE:SPOT) give the stock a fair value for the growth of 5.67% from its last price. The 12-month price forecast for the stock by analysts puts the stock’s mean price target at $163.58, which means the price per share could rise by nearly $9.27. The price range target is between a low of $90.90 and a high of $206.92. The stock would need to gain by about $25.43 to hit the estimated high or 0.72% from its 12-month low.

The consensus among 22 analysts is that it is a good time for one to Overweight in the Spotify Technology S.A. 15 analysts rate SPOT as a Buy, with 3 of 22 analysts rate it as a Sell. 1 have valued the stock as Overweight and 2 have recommended that investors Hold.

Spotify Technology S.A. (NYSE:SPOT) Upgrades and Downgrades

In terms of rating changes, Evercore ISI on January 13, 2020, Downgrade Spotify Technology S.A. (SPOT) at Underperform. They believe the stock could reach $115 in the near term. Analysts at Bernstein have assigned a Underperform rating for the stock in their research note on January 09, 2020 with an estimated price target of $127. Moreover, Credit Suisse analysts issued a rating of Neutral for the stock on October 02, 2019. On October 01, 2019, the stock earned a In-line rating due to an analyst call from Evercore ISI, while analysts from Wells Fargo on September 24, 2019 suggested that the stock is Underperform.

Continental Resources Inc. (NYSE:CLR) adds -$0.12 on Tuesday

The CLR stock has tanked -22.62% year-to-date and is currently trading at $26.54, which is -49.00% below its 52-week high. The company shares lost -0.45% on the day and have tanked nearly -0.15% off a low hit. At current levels, Continental Resources Inc. has a valuation of about $4.59B. As of 02/04/20, this stock has fallen -9.14% during the week and closed at $26.66 in the previous session. However, recent Continental Resources Inc. stock performance shows that CLR shares are -24.90% down over the last month, and -11.83% down for the last three months.

Earnings per share (EPS) estimates for the current quarter are $0.61, with the trailing 12-month share earnings at $2.09. The ratio is expected to be down by -21.50% for the current year 2019 and 6.30% for next year. Over the next 5-year period, earnings per share will be -3.42%. But will the CLR stock surprise in the current quarter results, where the $0.54 actual EPS reported on 9/29/2019 surprised by 14.90% or was higher by $0.07 from the estimated $0.47.

Sales Growth to climb 6.00% for the year

How well will Continental Resources Inc. perform as a business over the current quarter, year and next 5-year period? Compared to the year-ago quarter, analysts forecast the company to bring in between $1.09B and $1.22B in current quarter sales. The consensus estimated for the current quarter is $1.14B from sales. Forecasts for this fiscal year are between $4.42B and $4.66B and the consensus estimate for sales is at $4.56B. CLR has its next quarter sales estimates at between $1.05B and $1.33B, with the quarter-over-quarter growth estimates at 4.50% and the annual growth forecast for the year at 6.00%.

Who owns shares in Continental Resources Inc. (CLR)?

Let’s briefly focus on the share ownership of the Continental Resources Inc. (NYSE:CLR) stock, where we find that 4.53% of shares are held by institutions. Price (T.Rowe) Associates Inc tops the list of institutional owners as it is holding 8.12 million shares or 2.19% of shares outstanding. Vanguard Group, Inc. (The) and Blackrock Inc. held 7.55 million and 4.73 million representing 2.03% and 1.27% respectively at the close of the last trading session. As of Sep 29, 2019, Shaw D.E. & Co., Inc. accounted for 3.99 million shares at over 122.73 million. This represented 1.07% of shares outstanding. State Street Corporation held 3.61 million shares at over 111.24 million representing 0.97% of shares outstanding.

CLR Insider Activity

Insider activity can also give a signal in terms of price direction. Looking at Continental Resources Inc. (CLR), a total of 1812496 shares have been sold by insiders over the last 6 months while 884444 shares were added in the same time span. On 2/22/2019, Chairman & Chief Executive Officer by the name Hamm Harold G bought 579237.0 shares worth $25.8 million at the price of $44.57 per share. Filings also show that Hamm Harold G bought a total of 600000.0 shares on 3/22/2019 valued at $25.8 million. Since the last insider activity, the company’s share price has dropped -37.38%.