Lyft is now a value stock with growth dynamics, trading at a steep discount despite improving fundamentals and positive free cash flow. The company is expanding EBITDA margins and cash earnings at 25% annually, supported by a $750M buyback and strong net cash position. Risks include potential Uber price wars and regulatory changes, but Lyft's scale and market share make it resilient.
Investors with an interest in Internet - Services stocks have likely encountered both Lyft (LYFT) and Shopify (SHOP). But which of these two stocks offers value investors a better bang for their buck right now?
Lisa Thomas, Managing Director and Deputy Head of Global Research at TD Cowen, sees strong mid-cap upside driven by policy clarity. She highlights Lyft and Planet Fitness as undervalued turnaround plays with high growth potential.
Lyft is currently undervalued, with strong revenue growth and a solid balance sheet, but faces stiff competition and low profitability. AI optimization, especially the new driver earnings assistant, could significantly boost Lyft's productivity and profitability over time. European expansion via the FREENOW acquisition offers growth potential, but also carries risks due to strong public transportation and market expansion challenges.
LYFT gains edge over GRAB with rising gross bookings, an inexpensive valuation and standout price performance.
LYFT's gross bookings rose 13% to $4.6 billion in the first quarter as active riders hit a record, boosted by new markets and its Price Lock feature.
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The latest trading day saw Lyft (LYFT) settling at $14.78, representing a -4.27% change from its previous close.
Lyft (LYFT) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Investors interested in stocks from the Internet - Services sector have probably already heard of Lyft (LYFT) and Shopify (SHOP). But which of these two stocks offers value investors a better bang for their buck right now?
LYFT surges 36.7% in 3 months, with strong bookings, upbeat guidance, and a $750 million buyback fueling momentum.
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