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Lemonade (LMND) Gains As Market Dips: What You Should Know

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Lemonade (LMND - Free Report) closed the most recent trading day at $24.25, moving +1.04% from the previous trading session. This change outpaced the S&P 500's 0.34% loss on the day.

Prior to today's trading, shares of the company had gained 38.73% over the past month. This has outpaced the Finance sector's gain of 3.15% and the S&P 500's gain of 5.03% in that time.

Investors will be hoping for strength from Lemonade as it approaches its next earnings release. The company is expected to report EPS of -$1.44, down 77.78% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $43.55 million, up 85.32% from the year-ago period.

LMND's full-year Zacks Consensus Estimates are calling for earnings of -$5.65 per share and revenue of $213.75 million. These results would represent year-over-year changes of -43.4% and +66.47%, respectively.

Investors should also note any recent changes to analyst estimates for Lemonade. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Lemonade is currently sporting a Zacks Rank of #4 (Sell).

The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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