Lyft, Inc. (NASDAQ:LYFT) is a prominent transportation network company that has revolutionized the way people move around in urban areas. Founded in 2012, Lyft provides a convenient and accessible platform for users to request rides from nearby drivers through a user-friendly mobile application. With a strong focus on community and sustainability, Lyft has gained popularity for its shared ride options, which not only reduce traffic congestion but also contribute to a greener environment. 

The company’s commitment to safety is evident through its rigorous driver screening and insurance policies, ensuring a secure and reliable experience for passengers. Offering a range of services, including traditional Lyft rides, luxury options, and even bike and scooter rentals, Lyft continues to enhance the mobility landscape and connect people in cities across the globe.

Lyft stock has outperformed the market in the last three months and has the ability to continue this trend. If you haven’t already taken advantage of the stock’s rising share price, now is the time to add it to your portfolio.

Let’s look at the aspects that make LYFT an appealing option.

An Outperformer: A look at the company’s price movement shows that its shares have gained 15.5% in the last three months, compared to the industry’s 9.6% rise.

Estimate Revisions to the North: Two forecasts for 2023 have been revised to the north in the last 60 days, with no downward revisions, demonstrating analysts’ confidence in the company. In the last 60 days, the Consensus Estimate for LYFT’s 2023 earnings has risen by 20%.

Strong Growth Prospects: The consensus forecast for 2023 earnings is 18 cents per share, representing a 112% increase year over year. Furthermore, earnings are predicted to increase by 194% by 2024.  

Factors Affecting Demand: Lyft is benefiting from an increase in driver supply. In terms of driver productivity, active drivers generated 17% more rides than three years ago. Lyft’s revenue climbed in the first quarter of 2023, thanks to a 9.8% increase in active riders year over year. Management anticipates sales of $1 billion to $1.02 billion in the second quarter of 2023.

The corporation has adequate liquidity. It had $1,754 million in cash and equivalents at the end of the first quarter of 2023, which was more than its long-term debt of $793.42 million. This suggests that it has sufficient cash to pay off its debts.

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