In the latest trading session, Lyft (LYFT) closed at $14.76, marking a -1.14% move from the previous day. This change lagged the S&P 500's daily gain of 0.54%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq increased by 0.74%.
Heading into today, shares of the ride-hailing company had gained 1.63% over the past month, lagging the Computer and Technology sector's gain of 5.77% and the S&P 500's gain of 4.2%.
The investment community will be closely monitoring the performance of Lyft in its forthcoming earnings report. The company's upcoming EPS is projected at $0.27, signifying a 12.50% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.61 billion, indicating a 12.28% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.1 per share and a revenue of $6.51 billion, representing changes of +15.79% and +12.5%, respectively, from the prior year.
Any recent changes to analyst estimates for Lyft should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.27% decrease. Lyft currently has a Zacks Rank of #4 (Sell).
Looking at valuation, Lyft is presently trading at a Forward P/E ratio of 13.57. This represents a discount compared to its industry average Forward P/E of 19.88.
Also, we should mention that LYFT has a PEG ratio of 0.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 1.54 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Lyft, Inc. (LYFT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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