Lyft (LYFT) ended the recent trading session at $14.78, demonstrating a -4.27% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.13%. At the same time, the Dow lost 1.79%, and the tech-heavy Nasdaq lost 1.3%.
Coming into today, shares of the ride-hailing company had lost 4.87% in the past month. In that same time, the Computer and Technology sector gained 7.36%, while the S&P 500 gained 3.55%.
The investment community will be paying close attention to the earnings performance of Lyft in its upcoming release. On that day, Lyft is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 12.5%. At the same time, our most recent consensus estimate is projecting a revenue of $1.61 billion, reflecting a 12.28% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.11 per share and a revenue of $6.52 billion, indicating changes of +16.84% and +12.68%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Lyft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lyft is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Lyft has a Forward P/E ratio of 13.95 right now. This valuation marks a discount compared to its industry average Forward P/E of 18.61.
Investors should also note that LYFT has a PEG ratio of 0.67 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.38.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 140, this industry ranks in the bottom 44% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Lyft, Inc. (LYFT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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