Lyft (LYFT) closed the most recent trading day at $13.60, moving +2.8% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 1.23%.
Prior to today's trading, shares of the ride-hailing company had gained 1.22% outpaced the Computer and Technology sector's gain of 1.17% and the S&P 500's gain of 0.63%.
The upcoming earnings release of Lyft will be of great interest to investors. The company is expected to report EPS of $0.3, up 57.89% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.61 billion, reflecting a 11.35% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.54 per share and a revenue of $7.21 billion, signifying shifts of +220.83% and +14.15%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lyft. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.74% lower. Lyft is currently a Zacks Rank #3 (Hold).
In the context of valuation, Lyft is at present trading with a Forward P/E ratio of 8.58. For comparison, its industry has an average Forward P/E of 13.31, which means Lyft is trading at a discount to the group.
It's also important to note that LYFT currently trades at a PEG ratio of 0.35. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.95.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 151, placing it within the bottom 39% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow LYFT in the coming trading sessions, be sure to utilize Zacks.com.
Quantum Computing Stocks Set To Soar
Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power , you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lyft, Inc. (LYFT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).