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Lightspeed Commerce Inc. (LSPD) Falls More Steeply Than Broader Market: What Investors Need to Know

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Lightspeed Commerce Inc. (LSPD - Free Report) closed the most recent trading day at $15.15, moving -1.88% from the previous trading session. This move lagged the S&P 500's daily loss of 0.92%. Elsewhere, the Dow saw a downswing of 0.96%, while the tech-heavy Nasdaq depreciated by 1.6%.

The company's stock has climbed by 11.16% in the past month, exceeding the Business Services sector's gain of 3.11% and the S&P 500's gain of 2.68%.

The upcoming earnings release of Lightspeed Commerce Inc. will be of great interest to investors. The company's earnings report is expected on November 7, 2024. The company is forecasted to report an EPS of $0.10, showcasing a 150% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $274.03 million, indicating a 19.01% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.36 per share and revenue of $1.1 billion, indicating changes of +125% and +20.69%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Lightspeed Commerce Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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 remained unchanged. Lightspeed Commerce Inc. is holding a Zacks Rank of #2 (Buy) right now.

In the context of valuation, Lightspeed Commerce Inc. is at present trading with a Forward P/E ratio of 42.65. Its industry sports an average Forward P/E of 25.02, so one might conclude that Lightspeed Commerce Inc. is trading at a premium comparatively.

Investors should also note that LSPD has a PEG ratio of 1.28 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Technology Services was holding an average PEG ratio of 1.48 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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