Yahoo Finance Lyft (LYFT) Surges 8.2%: Is This an Indication of Further Gains?
Lyft (LYFT) shares ended the last trading session 8.2% higher at $61.76. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 20.1% gain over the past four weeks.
The stock rallied following its bullish update on February ride volumes and improved adjusted EBITDA loss forecast for the first quarter of 2021. In a SEC filing dated Mar 2, the company revealed that the week ending Feb 28 recorded the highest volume of rideshare rides since March 2020, when the pandemic began disrupting its operations by confining people to their homes. On a further positive note, Lyft improved its adjusted EBITDA loss estimate for the first quarter owing to its cost-control measures and the expectation of contribution margin at the high end of its guided range.
Price and Consensus
This ride-hailing company is expected to post quarterly loss of $0.57 per share in its upcoming report, which represents a year-over-year change of -78.1%. Revenues are expected to be $552.82 million, down 42.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Lyft, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on LYFT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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