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

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In the latest trading session, Lyft (LYFT - Free Report) closed at $19.42, marking a -2.22% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.88%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 1.31%.

Coming into today, shares of the ride-hailing company had gained 0.51% in the past month. In that same time, the Computer and Technology sector gained 1.49%, while the S&P 500 gained 2.48%.

The investment community will be paying close attention to the earnings performance of Lyft in its upcoming release. The company's earnings per share (EPS) are projected to be $0.32, reflecting a 6.67% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.76 billion, up 13.69% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.19 per share and a revenue of $6.5 billion, representing changes of +25.26% and +12.34%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Lyft. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Lyft currently has a Zacks Rank of #2 (Buy).

Investors should also note Lyft's current valuation metrics, including its Forward P/E ratio of 16.69. This signifies a discount in comparison to the average Forward P/E of 19.77 for its industry.

We can additionally observe that LYFT currently boasts a PEG ratio of 0.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. LYFT's industry had an average PEG ratio of 1.75 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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