Lyft (LYFT) closed the most recent trading day at $13.70, moving +2.7% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.44%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.54%.
The ride-hailing company's shares have seen an increase of 0.68% over the last month, surpassing the Computer and Technology sector's loss of 2.47% and the S&P 500's loss of 3.31%.
The investment community will be closely monitoring the performance of Lyft in its forthcoming earnings report. The company is predicted to post an EPS of $0.3, indicating a 57.89% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.62 billion, showing a 11.46% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.54 per share and a revenue of $7.22 billion, demonstrating changes of +220.83% and +14.24%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lyft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Lyft is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Lyft is currently exchanging hands at a Forward P/E ratio of 8.64. For comparison, its industry has an average Forward P/E of 13.98, which means Lyft is trading at a discount to the group.
It's also important to note that LYFT currently trades at a PEG ratio of 0.35. 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 Internet - Services industry currently had an average PEG ratio of 1.86 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 30% echelons 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.
To follow LYFT in the coming trading sessions, be sure to utilize 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.
