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Lightspeed Commerce Inc. (LSPD) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest close session, Lightspeed Commerce Inc. (LSPD - Free Report) was down 2.77% at $10.89. 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%.

Coming into today, shares of the company had gained 13.36% in the past month. In that same time, the Computer and Technology sector gained 2.98%, while the S&P 500 gained 0.45%.

Market participants will be closely following the financial results of Lightspeed Commerce Inc. in its upcoming release. On that day, Lightspeed Commerce Inc. is projected to report earnings of $0.11 per share, which would represent year-over-year growth of 10%. Simultaneously, our latest consensus estimate expects the revenue to be $286.85 million, showing a 7.8% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $0.53 per share and a revenue of $1.19 billion, demonstrating changes of +17.78% and +10.44%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Lightspeed Commerce Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 15.31% lower within the past month. Lightspeed Commerce Inc. presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Lightspeed Commerce Inc. is currently trading at a Forward P/E ratio of 21.25. Its industry sports an average Forward P/E of 27.94, so one might conclude that Lightspeed Commerce Inc. is trading at a discount comparatively.

We can also see that LSPD currently has a PEG ratio of 1.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 2.11 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 52, this industry ranks in the top 22% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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