Lyft (LYFT) closed the most recent trading day at $14.83, moving +1.51% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.22%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.66%.
Coming into today, shares of the ride-hailing company had gained 3.54% in the past month. In that same time, the Computer and Technology sector lost 2.58%, while the S&P 500 lost 1.21%.
The upcoming earnings release of Lyft will be of great interest to investors. The company is expected to report EPS of $0.39, up 56% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.81 billion, indicating a 13.68% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.57 per share and revenue of $7.3 billion, which would represent changes of +227.08% and +15.51%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Lyft. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, 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 past month, there's been a 4.94% rise in the Zacks Consensus EPS estimate. Currently, Lyft is carrying a Zacks Rank of #3 (Hold).
Investors should also note Lyft's current valuation metrics, including its Forward P/E ratio of 9.31. Its industry sports an average Forward P/E of 14.8, so one might conclude that Lyft is trading at a discount comparatively.
We can additionally observe that LYFT currently boasts a PEG ratio of 0.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.61.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
