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Lyft (LYFT) Stock Slides as Market Rises: Facts to Know Before You Trade

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Lyft (LYFT - Free Report) closed the most recent trading day at $21.99, moving -2.74% from the previous trading session. This change lagged the S&P 500's 0.01% gain on the day. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Coming into today, shares of the ride-hailing company had gained 34.66% in the past month. In that same time, the Computer and Technology sector gained 10.49%, while the S&P 500 gained 4.83%.

The upcoming earnings release of Lyft will be of great interest to investors. The company is forecasted to report an EPS of $0.3, showcasing a 3.45% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.7 billion, reflecting a 11.95% rise from the equivalent quarter last year.

LYFT's full-year Zacks Consensus Estimates are calling for earnings of $1.18 per share and revenue of $6.53 billion. These results would represent year-over-year changes of +24.21% and +12.85%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Lyft. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lyft presently features a Zacks Rank of #2 (Buy).

In the context of valuation, Lyft is at present trading with a Forward P/E ratio of 19.16. For comparison, its industry has an average Forward P/E of 24.71, which means Lyft is trading at a discount to the group.

Meanwhile, LYFT's PEG ratio is currently 1.03. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.66.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow LYFT in the coming trading sessions, be sure to utilize Zacks.com.


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