Upstart Holdings, Inc. (UPST) Dips More Than Broader Market: What You Should Know

Upstart Holdings, Inc. (UPST) closed at $25.93 in the latest trading session, marking a -3.89% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.48% for the day. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.64%.

Heading into today, shares of the company had lost 9.74% over the past month, lagging the Finance sector's loss of 0.68% and the S&P 500's loss of 0.97%.

Investors will be eagerly watching for the performance of Upstart Holdings, Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.6, reflecting a 15.38% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $364.63 million, reflecting a 31.58% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.2 per share and revenue of $1.42 billion, which would represent changes of +26.44% and +36%, respectively, from the prior year.

Any recent changes to analyst estimates for Upstart Holdings, Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Upstart Holdings, Inc. is currently a Zacks Rank #4 (Sell).

Investors should also note Upstart Holdings, Inc.'s current valuation metrics, including its Forward P/E ratio of 12.24. This denotes a premium relative to the industry average Forward P/E of 11.72.

We can additionally observe that UPST currently boasts a PEG ratio of 0.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Financial - Miscellaneous Services industry had an average PEG ratio of 1.15.

The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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