Lyft (LYFT) closed the most recent trading day at $14.32, moving -0.49% from the previous trading session. This change was narrower than the S&P 500’s 1.11% loss on the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 1.89%.
The ride-hailing company’s shares have seen a decrease of 11.72% over the last month, not keeping up with the Computer and Technology sector’s gain of 1.83% and the S&P 500’s loss of 1.7%.
The upcoming earnings release of Lyft will be of great interest to investors. The company is forecasted to report an EPS of $0.25, showcasing a 31.58% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.55 billion, showing a 26.69% escalation compared to the year-ago quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lyft. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there’s been no change in the Zacks Consensus EPS estimate. At present, Lyft boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Lyft is presently trading at a Forward P/E ratio of 13.63. For comparison, its industry has an average Forward P/E of 23.71, which means Lyft is trading at a discount to the group.
Meanwhile, LYFT’s PEG ratio is currently 0.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The average PEG ratio for the Internet – Services industry stood at 1.65 at the close of the market yesterday.
The Internet – Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
