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Why Upstart Holdings, Inc. (UPST) Dipped More Than Broader Market Today

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Upstart Holdings, Inc. (UPST - Free Report) closed at $34.86 in the latest trading session, marking a -1.91% move from the prior day. This change lagged the S&P 500's 0.15% loss on the day. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.09%.

The company's stock has dropped by 0.31% in the past month, falling short of the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 3.5%.

Market participants will be closely following the financial results of Upstart Holdings, Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be -$0.14, reflecting a 44% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $135.31 million, reflecting a 7.89% fall from the equivalent quarter last year.

Investors should also note any recent changes to analyst estimates for Upstart Holdings, Inc. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Upstart Holdings, Inc. is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Upstart Holdings, Inc. has a Forward P/E ratio of 206.63 right now. Its industry sports an average Forward P/E of 25.82, so one might conclude that Upstart Holdings, Inc. is trading at a premium comparatively.

The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 50, this industry ranks in the top 20% of all industries, numbering over 250.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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