In the latest trading session, Lyft (LYFT) closed at $15.52, marking a -2.88% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.01% for the day. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 1.4%.
Prior to today's trading, shares of the ride-hailing company had gained 11.9% outpaced the Computer and Technology sector's loss of 3.73% and the S&P 500's gain of 0.32%.
Investors will be eagerly watching for the performance of Lyft in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 6, 2026. The company's earnings per share (EPS) are projected to be $0.39, reflecting a 56% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.81 billion, up 13.68% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.57 per share and revenue of $7.3 billion. These totals would mark changes of +227.08% and +15.51%, respectively, from last year.
Any recent changes to analyst estimates for Lyft should also be noted by investors. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. At present, Lyft boasts a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Lyft is holding a Forward P/E ratio of 10.18. Its industry sports an average Forward P/E of 17.63, so one might conclude that Lyft is trading at a discount comparatively.
It's also important to note that LYFT currently trades at a PEG ratio of 0.42. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.72.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 38% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Lyft, Inc. (LYFT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).