Lyft (LYFT) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Lyft (LYFT) closed the most recent trading day at $13.16, moving -1.35% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.37%. Meanwhile, the Dow experienced a drop of 0.18%, and the technology-dominated Nasdaq saw a decrease of 0.84%.

Heading into today, shares of the ride-hailing company had gained 0.38% over the past month, outpacing the Computer and Technology sector's loss of 2.83% and the S&P 500's loss of 3.7%.

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 57.89% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.62 billion, indicating a 11.76% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.54 per share and revenue of $7.23 billion. These totals would mark changes of +220.83% and +14.42%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Lyft. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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 #3 (Hold).

In the context of valuation, Lyft is at present trading with a Forward P/E ratio of 8.64. Its industry sports an average Forward P/E of 15.43, so one might conclude that Lyft is trading at a discount comparatively.

It is also worth noting that LYFT currently has a PEG ratio of 0.35. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 26% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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