In the latest trading session, Lyft (LYFT) closed at $19.25, marking a -2.38% move from the previous day. The stock's change was more than the S&P 500's daily loss of 2.71%. Elsewhere, the Dow lost 1.9%, while the tech-heavy Nasdaq lost 3.56%.
The stock of ride-hailing company has risen by 7.64% in the past month, leading the Computer and Technology sector's gain of 6.22% and the S&P 500's gain of 3.5%.
Market participants will be closely following the financial results of Lyft in its upcoming release. The company's upcoming EPS is projected at $0.3, signifying a 3.45% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.7 billion, up 11.95% from the year-ago period.
LYFT's full-year Zacks Consensus Estimates are calling for earnings of $1.18 per share and revenue of $6.53 billion. These results would represent year-over-year changes of +24.21% and +12.85%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Lyft. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained unchanged. Lyft currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Lyft is presently being traded at a Forward P/E ratio of 16.71. This represents a discount compared to its industry average Forward P/E of 24.3.
Investors should also note that LYFT has a PEG ratio of 0.9 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Services industry stood at 1.64 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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.
