In the latest trading session, Lyft (LYFT – Free Report) closed at $12.90, marking a -1.15% move from the previous day. This move lagged the S&P 500’s daily loss of 0.43%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.9%.
Shares of the ride-hailing company have depreciated by 24% over the course of the past month, underperforming the Computer and Technology sector’s gain of 2.86% and the S&P 500’s loss of 1.98%.
The investment community will be closely monitoring the performance of Lyft in its forthcoming earnings report. On that day, Lyft is projected to report earnings of $0.25 per share, which would represent year-over-year growth of 31.58%. At the same time, our most recent consensus estimate is projecting a revenue of $1.55 billion, reflecting a 26.69% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.92 per share and revenue of $5.79 billion, indicating changes of +41.54% and +31.47%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Lyft. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Lyft currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Lyft has a Forward P/E ratio of 14.19 right now. This denotes a discount relative to the industry’s average Forward P/E of 23.93.
We can also see that LYFT currently has a PEG ratio of 0.32. 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 Internet – Services was holding an average PEG ratio of 2 at yesterday’s closing price.
The Internet – Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 33, placing it within the top 14% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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