Yahoo Finance Here's Why Investors Should Add LYFT Stock in Portfolio Now
Lyft, Inc. LYFT performed well in the past six-months period and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have rallied 28% in the past six-months period compared with 12.2% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: Lyft currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions: Six estimates for 2023 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2023 earnings has moved up 42% in the past 60 days.
Positive Earnings Surprise History: Lyft has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed once ), delivering an earnings surprise of 255.9%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for 2023 earnings is at 51 cents, which reflects year-over-year growth of more than 100%. Moreover, earnings are expected to register 13.5% growth in 2024.
Driving Factors: Lyft is benefiting from an uptick in driver supply. Highlighting the productivity of drivers, active drivers generated 17% more rides in 2022 than three years ago.
Driven by the 10% year-over-year rise in active riders, Lyft's top line increased in third-quarter 2023. Active riders had increased both in the first and second-quarter 2023. Projecting growth in rides to continue, management expects fourth-quarter revenues to rise mid-single digits quarter over quarter.
Lyft's new CEO David Risher aims to brighten Lyft's prospects by maintaining competitive prices and cutting costs. To boost revenues, the company plans to start displaying advertisements on its app.
Other Stocks to Consider
Investors interested may also consider stocks like Air Canada ACDVF and SkyWest SKYW.
Air Canada currently sports a Zacks Rank #1 (Strong Buy). An uptick in passenger traffic is aiding ACDVF. Recently, management announced plans to launch a new year-round route between Montreal and Madrid. You can see the complete list of today’s Zacks #1 Rank stocks here.
The service will commence in May of the following year as part of its expanded international summer 2024 flying schedule to cater to increased demand. The Zacks Consensus Estimate for current-year earnings has jumped 32.6% in the past 60 days.
SkyWest currently carries a Zacks Rank #2 (Buy). SKYW's fleet-modernization efforts are commendable. Initiatives to reward its shareholders also bode well. The Zacks Consensus Estimate for current-quarter earnings has surged 83.3% in the past 60 days.
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SkyWest, Inc. (SKYW) : Free Stock Analysis Report
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Lyft, Inc. (LYFT) : Free Stock Analysis Report
