Amid ongoing market uncertainties, investors seek opportunities for fruitful investments. Two frontrunners in the ride-sharing sector, Lyft and Uber Technologies, have piqued the interest of market participants with their impressive stock performance, witnessing a 20% surge in 2024.
Growth Trajectories
Lyft continues to focus on its ride-hailing business in the U.S. and Canada, with sales expected to increase by 16% in fiscal year 2024 and a further 13% in FY25. While earnings per share (EPS) might dip in FY24, a significant rebound is projected for FY25. On the other hand, Uber has been expanding internationally and diversifying its services, including food delivery. Sales are estimated to grow by 16% in FY24 to $50.49 billion, with a substantial EPS leap of 38% in the same fiscal year.
Earnings Estimate Revisions
Positive earnings estimate revisions can signal potential upside in stock prices. Uber has seen upward trends in its EPS estimates for FY24 and FY25, indicating favorable prospects. In contrast, Lyft has experienced slight declines in EPS estimates over the past 60 days for FY24 and FY25.
Bottom Line
Both Lyft and Uber exhibit robust growth potential and are alluring options for investors looking to capitalize on market dips. Uber, sporting a Zacks Rank #1 (Strong Buy), stands out with promising earnings estimates, while Lyft holds a Zacks Rank #3 (Hold).
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Investors can glean further insights by analyzing the detailed stock analysis reports for Lyft, Inc. (LYFT) and Uber Technologies, Inc. (UBER).
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