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Lightspeed Commerce Inc. (LSPD) Stock Sinks As Market Gains: Here's Why

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Lightspeed Commerce Inc. (LSPD - Free Report) closed at $15.84 in the latest trading session, marking a -0.44% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.77%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.87%.

Heading into today, shares of the company had gained 26.07% over the past month, outpacing the Business Services sector's gain of 3.7% and the S&P 500's gain of 4.87% in that time.

Market participants will be closely following the financial results of Lightspeed Commerce Inc. in its upcoming release. The company plans to announce its earnings on November 7, 2024. In that report, analysts expect Lightspeed Commerce Inc. to post earnings of $0.10 per share. This would mark year-over-year growth of 150%. At the same time, our most recent consensus estimate is projecting a revenue of $274.03 million, reflecting a 19.01% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.36 per share and a revenue of $1.1 billion, indicating changes of +125% and +20.69%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Lightspeed Commerce Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Lightspeed Commerce Inc. is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Lightspeed Commerce Inc. is currently being traded at a Forward P/E ratio of 43.95. This signifies a premium in comparison to the average Forward P/E of 25.78 for its industry.

Investors should also note that LSPD has a PEG ratio of 1.32 right now. 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. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.64.

The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 33% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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