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Here's Why Upstart Holdings, Inc. (UPST) Fell More Than Broader Market

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Upstart Holdings, Inc. (UPST - Free Report) closed the most recent trading day at $58.01, moving -1.81% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.51%.

Prior to today's trading, shares of the company had gained 29.48% outpaced the Finance sector's loss of 1.59% and the S&P 500's gain of 0.45%.

The upcoming earnings release of Upstart Holdings, Inc. will be of great interest to investors. The company's upcoming EPS is projected at $0.28, signifying a 264.71% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $226.38 million, up 77.37% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.57 per share and a revenue of $1.01 billion, indicating changes of +885% and +58.79%, respectively, from the former year.

Any recent changes to analyst estimates for Upstart Holdings, Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Upstart Holdings, Inc. is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Upstart Holdings, Inc. currently has a Forward P/E ratio of 37.71. Its industry sports an average Forward P/E of 11.07, so one might conclude that Upstart Holdings, Inc. is trading at a premium comparatively.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 42% 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.

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


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