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

Upstart Holdings, Inc. (UPST) closed at $23.03 in the latest trading session, marking a -1.83% move from the prior day. This change lagged the S&P 500's 1.13% loss on the day. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Coming into today, shares of the company had lost 12.59% in the past month. In that same time, the Computer and Technology sector lost 11.27%, while the S&P 500 lost 7.59%.

Investors will be hoping for strength from Upstart Holdings, Inc. as it approaches its next earnings release. On that day, Upstart Holdings, Inc. is projected to report earnings of -$0.08 per share, which would represent a year-over-year decline of 113.33%. Our most recent consensus estimate is calling for quarterly revenue of $169.64 million, down 25.74% from the year-ago period.

UPST's full-year Zacks Consensus Estimates are calling for earnings of $0.71 per share and revenue of $887.88 million. These results would represent year-over-year changes of -70.04% and +4.63%, respectively.

It is also important to note the recent changes to analyst estimates for Upstart Holdings, Inc.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 company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Upstart Holdings, Inc. currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Upstart Holdings, Inc. has a Forward P/E ratio of 33.12 right now. For comparison, its industry has an average Forward P/E of 22.35, which means Upstart Holdings, Inc. is trading at a premium to the group.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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