Lyft (LYFT) closed the most recent trading day at $13.71, moving +2.39% from the previous trading session. The stock outpaced the S&P 500’s daily gain of 1.75%. Meanwhile, the Dow experienced a rise of 1.86%, and the technology-dominated Nasdaq saw an increase of 2.54%.
Coming into today, shares of the ride-hailing company had lost 2.12% in the past month. In that same time, the Computer and Technology sector lost 3.11%, while the S&P 500 lost 1.63%.
Market participants will be closely following the financial results of Lyft in its upcoming release. On that day, Lyft is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 56%. Alongside, our most recent consensus estimate is anticipating revenue of $1.8 billion, indicating a 13.58% upward movement from the same quarter last year.
LYFT’s full-year Zacks Consensus Estimates are calling for earnings of $1.57 per share and revenue of $7.28 billion. These results would represent year-over-year changes of +227.08% and +15.3%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Lyft. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.94% higher. At present, Lyft boasts a Zacks Rank of #3 (Hold).
Investors should also note Lyft’s current valuation metrics, including its Forward P/E ratio of 8.53. This signifies a discount in comparison to the average Forward P/E of 15.6 for its industry.
Investors should also note that LYFT has a PEG ratio of 0.35 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Internet – Services industry had an average PEG ratio of 1.7 as trading concluded yesterday.
The Internet – Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 29% of all 250+ industries.
