Lyft (LYFT) closed the most recent trading day at $15.32, moving +2% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.86%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.96%.
The ride-hailing company’s shares have seen a decrease of 12.32% over the last month, not keeping up with the Computer and Technology sector’s loss of 0.56% and the S&P 500’s loss of 1.96%.
Analysts and investors alike will be keeping a close eye on the performance of Lyft in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $0.44, reflecting a 69.23% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.93 billion, showing a 14.67% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.58 per share and a revenue of $7.32 billion, indicating changes of +229.17% and +15.94%, respectively, from the former year.
Any recent changes to analyst estimates for Lyft should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Lyft possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Lyft is currently trading at a Forward P/E ratio of 9.51. This signifies a discount in comparison to the average Forward P/E of 15.96 for its industry.
Meanwhile, LYFT’s PEG ratio is currently 0.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Internet – Services industry currently had an average PEG ratio of 1.48 as of yesterday’s close.
The Internet – Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 200, positioning it in the bottom 19% of all 250+ industries.
