Lyft (lyft) Exceeds Market Returns: Some Facts To Consider

Lyft (LYFT) closed the latest trading day at $11.61, indicating a +1.57% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.49% for the day. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq appreciated by 1.22%.

Heading into today, shares of the ride-hailing company had lost 20.57% over the past month, lagging the Computer and Technology sector's loss of 12.07% and the S&P 500's loss of 8.15% in that time.

The upcoming earnings release of Lyft will be of great interest to investors. On that day, Lyft is projected to report earnings of $0.20 per share, which would represent year-over-year growth of 33.33%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.47 billion, indicating a 15.16% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.07 per share and a revenue of $6.59 billion, indicating changes of +12.63% and +13.92%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Lyft. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 46.39% higher. Currently, Lyft is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Lyft is presently being traded at a Forward P/E ratio of 10.65. This expresses a discount compared to the average Forward P/E of 21.49 of its industry.

Meanwhile, LYFT's PEG ratio is currently 0.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.39.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 138, putting it in the bottom 46% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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

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