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Lyft (LYFT) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest trading session, Lyft (LYFT - Free Report) closed at $21.96, marking a -3.85% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.48%. Elsewhere, the Dow saw an upswing of 0.27%, while the tech-heavy Nasdaq appreciated by 0.94%.

The ride-hailing company's shares have seen an increase of 46.69% over the last month, surpassing the Computer and Technology sector's gain of 5.46% and the S&P 500's gain of 2.46%.

The upcoming earnings release of Lyft will be of great interest to investors. The company is predicted to post an EPS of $0.3, indicating a 3.45% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.72 billion, up 12.64% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.18 per share and revenue of $6.56 billion, which would represent changes of +24.21% and +13.39%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Lyft. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Lyft is currently a Zacks Rank #2 (Buy).

Investors should also note Lyft's current valuation metrics, including its Forward P/E ratio of 19.36. This valuation marks a discount compared to its industry average Forward P/E of 25.04.

Meanwhile, LYFT's PEG ratio is currently 1.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Services industry stood at 1.68 at the close of the market yesterday.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 38% of all 250+ industries.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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