Lyft (LYFT) ended the recent trading session at $21.57, demonstrating a -2.22% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.5% for the day. Elsewhere, the Dow saw a downswing of 0.38%, while the tech-heavy Nasdaq depreciated by 0.5%.
The ride-hailing company's stock has climbed by 35.75% in the past month, exceeding the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 2.74%.
The investment community will be paying close attention to the earnings performance of Lyft in its upcoming release. The company's upcoming EPS is projected at $0.3, signifying a 3.45% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.7 billion, indicating a 11.95% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.18 per share and a revenue of $6.54 billion, indicating changes of +24.21% and +13.04%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Lyft. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Lyft currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Lyft is presently being traded at a Forward P/E ratio of 18.69. This represents a discount compared to its industry average Forward P/E of 24.84.
We can also see that LYFT currently has a PEG ratio of 1.01. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet – Services industry currently had an average PEG ratio of 1.67 as of yesterday's close.
The Internet – Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 36% echelons of all 250+ industries.
