As market jitters linger and investors seek buy-the-dip opportunities, ride-sharing giants Lyft and Uber Technologies are in the spotlight. Both companies have seen their stocks surge by over 20% in 2024, providing a tempting prospect for potential investors.
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Growth Trajectories
Lyft, focusing on its ride-hailing business primarily in the U.S. and Canada, is projected to have sales growth of 16% in fiscal 2024, with a further 13% jump anticipated in FY25 to $5.81 billion. Despite a slight decline to $0.61 per share in FY24, earnings are expected to rebound significantly in FY25, reaching $0.94 per share.
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On the other hand, Uber’s international expansion plans, along with its foray into food delivery, are driving its sales growth. Sales are forecasted to rise by 16% in FY24 and another 16% in FY25 to $50.49 billion. Uber’s earnings per share (EPS) are projected to soar by 38% in FY24 to $1.20 per share compared to $0.87 per share in 2023. The outlook for FY25 is even more impressive, with an expected 68% surge to $2.01 per share.
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Earnings Estimate Revisions
While both Lyft and Uber have shown strong stock performances due to their growth and move towards profitability, positive earnings estimate revisions serve as a key indicator for potential stock upside. Uber stands out in this aspect, with EPS estimates for FY24 and FY25 trending higher over the past quarter and slightly increasing over the last 30 days.
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Conversely, Lyft’s EPS estimates for FY24 and FY25 have seen declines of -3% and -11% respectively over the past 60 days.
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Bottom Line
With their promising growth trajectories, Lyft and Uber emerge as strong buy-the-dip candidates. However, Uber’s stock, backed by a Zacks Rank #1 (Strong Buy), appears to have a potentially higher upside, fueled by positive earnings estimates. In comparison, Lyft secures a Zacks Rank #3 (Hold).
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Lyft, Inc. (LYFT) : Free Stock Analysis Report
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