Lyft Stock (NASDAQ:LYFT) finished the most recent trading day at $12.95, marking a movement of -1.67% compared to the previous trading session’s closing price. This move came in behind the daily increase of 2.59% seen by the S&P 500. In the meantime, the Dow rose by 2.66%, while the Nasdaq, an index heavily weighted toward technology, climbed 0.12%.
Shares of the ride-hailing firm had already dropped 9.79% during the previous month before today’s trade. This has been a smaller decrease than the Computer and Technology sector’s loss of 11.97% and a smaller decrease than the S&P 500’s loss of 9.22% during the same period.
When Lyft (NASDAQ:LYFT) gets closer to its following earnings report date, Wall Street will be expecting positive signs from the company. The most current average estimate calls for quarterly sales of $1.05 billion, which would represent a 22.02% increase over the same time the previous year.
LYFT Stock Price Analysis
Our Zacks Consensus Estimates are projecting full-year earnings of $0.43 per share and revenue of $4.16 billion, which would represent changes of +272% and +29.7%, respectively, from the previous year’s numbers. These figures are based on the assumption that the company will maintain its current level of operations throughout the year.
Any new modifications analysts have made to their projections about Lyft should also be monitored by investors. These more recent alterations often reflect the ever-changing character of short-term business trends. Because of this, we may take estimate revisions in the positive direction as a favorable indicator for the future of the company’s operations.
According to our study, variations in these estimates have a clear relationship with stock prices soon. Using the Zacks Rank, investors have the opportunity to capitalize on this situation. This model considers these estimate changes and gives a straightforward and practical scoring system.
The Zacks Rank methodology, which has a track record of outperformance and ranges from #1 (Strong Buy) to #5 (Strong Sell), has a proven and independently audited track record, with #1 stocks returning an average of +25% annually since 1988. Our overall consensus estimate for EPS has increased by 12.52% over the past month. There is a Zacks Rank of 3 for Lyft right now (Hold).
Investors would be well to notice that Lyft (NASDAQ:LYFT) now has a Forward P/E ratio of 30.63. Valuation is another crucial aspect of a company; investors should keep this in mind. Its sector has an average Forward P/E of 19.11. Thus we may conclude that Lyft is trading at a premium compared to other companies in its sector.
The Internet-Services industry is within the purview of the Computer and Technology sector of the economy. This sector is ranked 89 out of more than 250 different industries by Zacks, which places it in the top 36 percent of all of those sectors.
The Zacks Industry Rank evaluates the competitiveness of our various industry groupings by calculating the average Zacks Rank of the stocks that are contained within those categories. According to our research findings, the industries classified in the top 50% do much better than those rated in the bottom 50% by a margin of 2 to 1.
Featured Image: Megapixl © Tiraspr
Author Valerie Remorosa