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In the latest trading session, Lyft (LYFT) closed at $12.90, marking a -1.15% move from the previous day. This move lagged the S&P 500's daily loss of 0.43%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.9%.
Shares of the ride-hailing company have depreciated by 24% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.86% and the S&P 500's loss of 1.98%.
The investment community will be closely monitoring the performance of Lyft in its forthcoming earnings report. On that day, Lyft is projected to report earnings of $0.25 per share, which would represent year-over-year growth of 31.58%. At the same time, our most recent consensus estimate is projecting a revenue of $1.55 billion, reflecting a 26.69% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.92 per share and revenue of $5.79 billion, indicating changes of +41.54% and +31.47%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Lyft. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Lyft currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Lyft has a Forward P/E ratio of 14.19 right now. This denotes a discount relative to the industry's average Forward P/E of 23.93.
We can also see that LYFT currently has a PEG ratio of 0.32. 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 Internet - Services was holding an average PEG ratio of 2 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 33, placing it within the top 14% of over 250 industries.