Upstart Holdings, Inc. Is a Trending Stock: Facts to Know Before Betting on It - Upstart Hldgs (NASDAQ:UP

　　Revenue Growth Forecast

　　While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

　　For Upstart, the consensus sales estimate for the current quarter of $125.16 million indicates a year-over-year change of -7.8%. For the current and next fiscal years, $557.68 million and $643.51 million estimates indicate +8.6% and +15.4% changes, respectively.

　　Last Reported Results and Surprise History

　　Upstart reported revenues of $127.79 million in the last reported quarter, representing a year-over-year change of +24.2%. EPS of -$0.31 for the same period compares with -$0.47 a year ago.

　　Compared to the Zacks Consensus Estimate of $124.82 million, the reported revenues represent a surprise of +2.39%. The EPS surprise was +18.42%.

　　Over the last four quarters, Upstart surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

　　Valuation

　　No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

　　While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

　　As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

　　Upstart is graded F on this front, indicating that it is trading at a premium to its peers.

　　© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.