In the latest trading session, Lyft (LYFT) closed at $15.50, marking a -1.21% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.14%. On the other hand, the Dow registered a gain of 0.61%, and the technology-centric Nasdaq increased by 1.69%.
Prior to today's trading, shares of the ride-hailing company had lost 9.98% lagged the Computer and Technology sector's loss of 1.69% and the S&P 500's loss of 2.85%.
The investment community will be paying close attention to the earnings performance of Lyft in its upcoming release. The company's earnings per share (EPS) are projected to be $0.45, reflecting a 73.08% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.93 billion, reflecting a 14.25% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.63 per share and revenue of $7.31 billion. These totals would mark changes of +239.58% and +15.8%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Lyft. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 7.05% rise in the Zacks Consensus EPS estimate. Lyft is currently a Zacks Rank #3 (Hold).
Looking at valuation, Lyft is presently trading at a Forward P/E ratio of 9.93. This denotes a discount relative to the industry average Forward P/E of 15.73.
We can additionally observe that LYFT currently boasts a PEG ratio of 0.5. 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 Internet - Services industry held an average PEG ratio of 1.52.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 184, this industry ranks in the bottom 26% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Lyft, Inc. (LYFT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).