Lyft (LYFT) shares rallied 9.6% in the last trading session to close at $13.60. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.8% gain over the past four weeks.
The uptick was owing to Tesla's TSLA disappointing Robotaxi event. The event failed to excite investors due to the lack of detail provided by TSLA on its latest full self-driving technology advancements. TSLA’s failure to provide insight on its ride-sharing service strategy also dampaned enthusiasm of investors. Tesla's unimpressive event buoyed shares of ride-sharing companies like LYFT.
This ride-hailing company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -20.8%. Revenues are expected to be $1.42 billion, up 22.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Lyft, the consensus EPS estimate for the quarter has been revised 16.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on LYFT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Lyft is a member of the Zacks Internet - Services industry. One other stock in the same industry, LivePerson (LPSN), finished the last trading session 8.3% higher at $1.17. LPSN has returned 1.9% over the past month.
For LivePerson
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