Lemonade (LMND) Stock Sinks As Market Gains: What You Should Know

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This story originally appeared on Zacks

In the latest trading session, Lemonade (LMND) closed at $71.39, marking a -0.93% move from the previous day. This move lagged the S&P 500’s daily gain of 0.42%.

– Zacks

Heading into today, shares of the company had gained 12.49% over the past month, outpacing the Finance sector’s gain of 6.34% and the S&P 500’s gain of 7.03% in that time.

LMND will be looking to display strength as it nears its next earnings release, which is expected to be November 8, 2021. In that report, analysts expect LMND to post earnings of -$1.15 per share. This would mark a year-over-year decline of 101.75%. Meanwhile, our latest consensus estimate is calling for revenue of $33.63 million, up 88.95% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$3.77 per share and revenue of $124.17 million. These totals would mark changes of -3.86% and +31.53%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for LMND. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. LMND is currently a Zacks Rank #4 (Sell).

The Insurance – Multi line industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 141, which puts it in the bottom 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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Lemonade, Inc. (LMND): Free Stock Analysis Report

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