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Upstart Holdings, Inc. (UPST) Outpaces Stock Market Gains: What You Should Know

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Upstart Holdings, Inc. (UPST - Free Report) closed the most recent trading day at $25.31, moving +1.36% from the previous trading session. This change outpaced the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.02%.

Coming into today, shares of the company had lost 31.17% in the past month. In that same time, the Computer and Technology sector lost 12.4%, while the S&P 500 lost 7.95%.

Wall Street will be looking for positivity from Upstart Holdings, Inc. as it approaches its next earnings report date. The company is expected to report EPS of -$0.08, down 113.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $169.64 million, down 25.74% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.71 per share and revenue of $887.88 million, which would represent changes of -70.04% and +4.63%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Upstart Holdings, Inc.Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Upstart Holdings, Inc. is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, Upstart Holdings, Inc. currently has a Forward P/E ratio of 35.25. For comparison, its industry has an average Forward P/E of 23.32, which means Upstart Holdings, Inc. is trading at a premium to the group.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow UPST in the coming trading sessions, be sure to utilize Zacks.com.


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