In the latest close session, Lyft (LYFT) was down 2.17% at $15.32. The stock trailed the S&P 500, which registered a daily gain of 0.28%. On the other hand, the Dow registered a gain of 0.43%, and the technology-centric Nasdaq increased by 0.09%.
Coming into today, shares of the ride-hailing company had gained 0.64% in the past month. In that same time, the Computer and Technology sector gained 6.2%, while the S&P 500 gained 4.37%.
Analysts and investors alike will be keeping a close eye on the performance of Lyft in its upcoming earnings disclosure. On that day, Lyft is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 12.5%. Alongside, our most recent consensus estimate is anticipating revenue of $1.61 billion, indicating a 12.28% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.1 per share and a revenue of $6.51 billion, signifying shifts of +15.79% and +12.5%, respectively, from the last year.
Any recent changes to analyst estimates for Lyft should also be noted by investors. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate has shifted 3.27% downward. As of now, Lyft holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Lyft is holding a Forward P/E ratio of 14.24. This valuation marks a discount compared to its industry average Forward P/E of 20.26.
It's also important to note that LYFT currently trades at a PEG ratio of 0.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet – Services industry stood at 1.59 at the close of the market yesterday.
The Internet – Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 39% of all 250+ industries.
