In the latest close session, Lyft (LYFT) was down 3.38% at $18.32. This change lagged the S&P 500's 0.85% gain on the day. Meanwhile, the Dow gained 1.36%, and the Nasdaq, a tech-heavy index, added 0.72%.
The ride-hailing company's stock has climbed by 30.04% in the past month, exceeding the Computer and Technology sector's gain of 4.39% and the S&P 500's gain of 2.38%.
The investment community will be closely monitoring the performance of Lyft in its forthcoming earnings report. The company is expected to report EPS of $0.3, up 3.45% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.72 billion, indicating a 12.84% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.18 per share and a revenue of $6.57 billion, representing changes of +24.21% and +13.52%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Lyft. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, there's been a 4.24% rise in the Zacks Consensus EPS estimate. Lyft is currently a Zacks Rank #2 (Buy).
Investors should also note Lyft's current valuation metrics, including its Forward P/E ratio of 16.07. This valuation marks a discount compared to its industry average Forward P/E of 23.99.
Also, we should mention that LYFT has a PEG ratio of 0.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet – Services industry held an average PEG ratio of 1.61.
The Internet – Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 148, positioning it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
