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Lyft (LYFT) Gains But Lags Market: What You Should Know

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Lyft (LYFT - Free Report) closed the most recent trading day at $13.91, moving +0.14% from the previous trading session. This move lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, added 0.78%.

Coming into today, shares of the ride-hailing company had gained 8.94% in the past month. In that same time, the Computer and Technology sector gained 1.87%, while the S&P 500 gained 1.67%.

The investment community will be paying close attention to the earnings performance of Lyft in its upcoming release. The company is slated to reveal its earnings on November 6, 2024. On that day, Lyft is projected to report earnings of $0.20 per share, which would represent a year-over-year decline of 16.67%. Alongside, our most recent consensus estimate is anticipating revenue of $1.42 billion, indicating a 22.75% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $0.79 per share and a revenue of $5.59 billion, demonstrating changes of +21.54% and +27%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Lyft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, there's been a 40% rise in the Zacks Consensus EPS estimate. Lyft is currently a Zacks Rank #2 (Buy).

Digging into valuation, Lyft currently has a Forward P/E ratio of 17.55. This expresses a discount compared to the average Forward P/E of 35.32 of its industry.

One should further note that LYFT currently holds a PEG ratio of 0.43. 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 Internet - Services industry currently had an average PEG ratio of 2.27 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 80, finds itself in the top 32% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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