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Lyft (LYFT) Registers a Bigger Fall Than the Market: Important Facts to Note

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The latest trading session saw Lyft (LYFT - Free Report) ending at $11.95, denoting a -1.24% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.5%. Elsewhere, the Dow gained 0.5%, while the tech-heavy Nasdaq lost 1.28%.

The ride-hailing company's stock has dropped by 13.39% in the past month, falling short of the Computer and Technology sector's loss of 4.37% and the S&P 500's gain of 0.1%.

The investment community will be paying close attention to the earnings performance of Lyft in its upcoming release. The company is slated to reveal its earnings on August 7, 2024. The company's earnings per share (EPS) are projected to be $0.19, reflecting a 26.67% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.39 billion, up 35.82% from the year-ago period.

LYFT's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $5.54 billion. These results would represent year-over-year changes of +10.77% and +25.92%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Lyft. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.7% higher. Currently, Lyft is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Lyft is currently trading at a Forward P/E ratio of 16.71. This indicates a discount in contrast to its industry's Forward P/E of 22.25.

Meanwhile, LYFT's PEG ratio is currently 0.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LYFT's industry had an average PEG ratio of 2.16 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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