Back to top

Image: Bigstock

Lyft (LYFT) Rises Higher Than Market: Key Facts

Read MoreHide Full Article

In the latest trading session, Lyft (LYFT - Free Report) closed at $11.72, marking a +1.65% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.08%. Meanwhile, the Dow experienced a rise of 0.92%, and the technology-dominated Nasdaq saw an increase of 1.41%.

Shares of the ride-hailing company have depreciated by 17.7% over the course of the past month, underperforming the Computer and Technology sector's loss of 13.17% and the S&P 500's loss of 8.26%.

Market participants will be closely following the financial results of Lyft in its upcoming release. The company is expected to report EPS of $0.20, up 33.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.47 billion, up 15.16% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.07 per share and revenue of $6.59 billion, indicating changes of +12.63% and +13.92%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lyft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Lyft possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Lyft is presently trading at a Forward P/E ratio of 10.75. This denotes a discount relative to the industry's average Forward P/E of 22.

We can also see that LYFT currently has a PEG ratio of 0.34. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.27.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 141, which puts it in the bottom 44% of all 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lyft, Inc. (LYFT) - free report >>

Published in