Upstart Holdings, Inc. (UPST) Registers a Bigger Fall Than the Market: Important Facts to Note

Upstart Holdings, Inc. (UPST) ended the recent trading session at $26.60, demonstrating a -4.69% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.37%. Elsewhere, the Dow saw a downswing of 0.18%, while the tech-heavy Nasdaq depreciated by 0.84%.

The company's shares have seen an increase of 2.38% over the last month, surpassing the Finance sector's loss of 5.16% and the S&P 500's loss of 3.7%.

The investment community will be paying close attention to the earnings performance of Upstart Holdings, Inc. in its upcoming release. The company is expected to report EPS of $0.38, up 26.67% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $290.01 million, showing a 35.92% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.37 per share and revenue of $1.4 billion, which would represent changes of +36.21% and +34.52%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Upstart Holdings, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there's been no change in the Zacks Consensus EPS estimate. Upstart Holdings, Inc. currently has a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Upstart Holdings, Inc. is presently being traded at a Forward P/E ratio of 11.8. This signifies a premium in comparison to the average Forward P/E of 9.97 for its industry.

Also, we should mention that UPST has a PEG ratio of 0.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Miscellaneous Services industry currently had an average PEG ratio of 0.84 as of yesterday's close.

The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 151, positioning it in the bottom 39% of all 250+ industries.

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.

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

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