Lyft (LYFT) Stock Sinks As Market Gains: What You Should Know

Lyft (LYFT) closed the most recent trading day at $12.95, moving -1.67% from the previous trading session. This move lagged the S&P 500's daily gain of 2.59%. Meanwhile, the Dow gained 2.66%, and the Nasdaq, a tech-heavy index, added 0.12%.

Prior to today's trading, shares of the ride-hailing company had lost 9.79% over the past month. This has was narrower than the Computer and Technology sector's loss of 11.97% and lagged the S&P 500's loss of 9.22% in that time.

Wall Street will be looking for positivity from Lyft as it approaches its next earnings report date. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, up 22.02% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.43 per share and revenue of $4.16 billion, which would represent changes of +272% and +29.7%, respectively, from the prior year.

Any recent changes to analyst estimates for Lyft should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 12.52% higher. Lyft currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Lyft has a Forward P/E ratio of 30.63 right now. Its industry sports an average Forward P/E of 19.11, so we one might conclude that Lyft is trading at a premium comparatively.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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