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Strength Seen in Lyft (LYFT): Can Its 6.1% Jump Turn into More Strength?
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Lyft (LYFT - Free Report) shares soared 6.1% in the last trading session to close at $10.44. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.1% gain over the past four weeks.
Lyft, which has been struggling for quite some time due to high costs, is looking to trim costs. To fulfill its objective, new CEO David Risher announced plans to trim its workforce. Per Risher, ' We need to bring our costs down to deliver affordable rides, compelling earnings for drivers, and profitable growth. We intend to use these savings to invest in competitive pricing, faster pick-up times, and better driver earnings." At least 1,200 Lyft workers will be laid off in the upcoming cuts, according to the Wall Street Journal. As the move will result in cost savings and drive the bottom line, it found favor with investors, causing share price appreciation.
This ride-hailing company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of -228.6%. Revenues are expected to be $976.57 million, up 11.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Lyft, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LYFT going forward to see if this recent jump can turn into more strength down the road.
Lyft belongs to the Zacks Internet - Services industry. Another stock from the same industry, Baidu Inc. (BIDU - Free Report) , closed the last trading session 2% lower at $124.96. Over the past month, BIDU has returned -15.6%.
For Baidu Inc., the consensus EPS estimate for the upcoming report has changed -13.9% over the past month to $1.93. This represents a change of +9% from what the company reported a year ago. Baidu Inc. currently has a Zacks Rank of #4 (Sell).
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Strength Seen in Lyft (LYFT): Can Its 6.1% Jump Turn into More Strength?
Lyft (LYFT - Free Report) shares soared 6.1% in the last trading session to close at $10.44. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.1% gain over the past four weeks.
Lyft, which has been struggling for quite some time due to high costs, is looking to trim costs. To fulfill its objective, new CEO David Risher announced plans to trim its workforce. Per Risher, ' We need to bring our costs down to deliver affordable rides, compelling earnings for drivers, and profitable growth. We intend to use these savings to invest in competitive pricing, faster pick-up times, and better driver earnings." At least 1,200 Lyft workers will be laid off in the upcoming cuts, according to the Wall Street Journal. As the move will result in cost savings and drive the bottom line, it found favor with investors, causing share price appreciation.
This ride-hailing company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of -228.6%. Revenues are expected to be $976.57 million, up 11.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Lyft, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LYFT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Lyft belongs to the Zacks Internet - Services industry. Another stock from the same industry, Baidu Inc. (BIDU - Free Report) , closed the last trading session 2% lower at $124.96. Over the past month, BIDU has returned -15.6%.
For Baidu Inc., the consensus EPS estimate for the upcoming report has changed -13.9% over the past month to $1.93. This represents a change of +9% from what the company reported a year ago. Baidu Inc. currently has a Zacks Rank of #4 (Sell).