In the latest trading session, Lyft (LYFT) closed at $21.96, marking a -3.85% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.48%. Elsewhere, the Dow saw an upswing of 0.27%, while the tech-heavy Nasdaq appreciated by 0.94%.
The ride-hailing company's shares have seen an increase of 46.69% over the last month, surpassing the Computer and Technology sector's gain of 5.46% and the S&P 500's gain of 2.46%.
The upcoming earnings release of Lyft will be of great interest to investors. The company is predicted to post an EPS of $0.3, indicating a 3.45% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.72 billion, up 12.64% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.18 per share and revenue of $6.56 billion, which would represent changes of +24.21% and +13.39%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates 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 business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 remained steady. Lyft is currently a Zacks Rank #2 (Buy).
Investors should also note Lyft's current valuation metrics, including its Forward P/E ratio of 19.36. This valuation marks a discount compared to its industry average Forward P/E of 25.04.
Meanwhile, LYFT's PEG ratio is currently 1.04. 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 average PEG ratio for the Internet – Services industry stood at 1.68 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 93, which puts it in the top 38% of all 250+ industries.

