Why Lyft (LYFT) is a Top Value Stock for the Long-Term

Zacks Premium highlights Lyft (LYFT) as a stock to watch, assigning it a Zacks Rank #2 (Buy) and a VGM Score of A. The company's attractive valuation metrics, including a forward P/E ratio of 13.27, contribute to a Value Style Score of B. Analysts are increasingly optimistic, with seven upward earnings estimate revisions for fiscal 2025, raising the Zacks Consensus Estimate to $1.11 per share.

Analysis

The Zacks Investment Research methodology, underpinning Zacks Premium, utilizes a proprietary Zacks Rank system and complementary Style Scores (Value, Growth, Momentum, and a combined VGM Score) to identify stocks with potential for market outperformance, primarily targeting a 30-day horizon. The Zacks Rank, driven by earnings estimate revisions, has demonstrated historical strength, with its #1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500. Lyft (LYFT), which commenced trading on Nasdaq in March 2019 following an IPO priced at $72 per share, is currently highlighted as a noteworthy stock. It holds a Zacks Rank #2 (Buy) and an overall VGM Score of A. The company's valuation is deemed attractive, supported by a Value Style Score of B and a forward P/E ratio of 13.27. Analyst outlook for Lyft's fiscal 2025 is increasingly positive, reflected by seven upward earnings estimate revisions in the last 60 days, which has propelled the Zacks Consensus Estimate by $0.10 to $1.11 per share. Furthermore, Lyft has a track record of exceeding earnings expectations, averaging an earnings surprise of 24.2%. The Zacks framework suggests that combining a high Zacks Rank with strong Style Scores (A or B) enhances the probability of a stock's successful performance.

Key Decisions for Investors

• Investors utilizing the Zacks framework should consider Lyft (LYFT) for potential inclusion in portfolios, given its Zacks Rank #2 (Buy), VGM Score of 'A', and 'B' Value Style Score supported by a forward P/E of 13.27.
• Continued attention to Lyft's earnings estimate revisions is warranted, as these are a primary driver of the Zacks Rank and a key indicator of sustained positive outlook according to the presented methodology.
• While LYFT scores well on Value and overall VGM metrics, investors should also consider how its Growth and Momentum characteristics, as defined by Zacks, align with their specific investment style and risk tolerance, noting the VGM score implies a favorable combination.