10 Best Stocks Under $15 To Buy Now

3. Lyft, Inc. (NASDAQ:LYFT)

Number of Hedge Fund Holders: 53

Share Price as of the close of September 27: $12.83

Lyft, Inc. (NASDAQ:LYFT) is a major American provider of Transportation-as-a-Service in the United States and Canada. The company offers ride-sharing, car and bike rentals, food delivery, and other related services through its Lytf app.

During the second quarter of 2024, the company reported that it had achieved GAAP profitability for the first time in its history, with a net income of $5 million. This robust result was driven by a 15% year-over-year increase in the total number of rides and a 10% growth in active riders compared to the same period in 2023 as the company supported 205 million rides and engaged with 23.7 million active users during the quarter.

Revenue in Q2 totaled $1.4 billion, up 40% from last year. Gross bookings crossed the $4 billion mark, representing a 17% increase, fueled by strong ride growth due to competitive pricing and successful marketing. Lyft, Inc. (NASDAQ:LYFT)’s media division also performed well during the quarter and saw its revenue grow 70% year-over-year, as the company signed deals with 44 new brands. The company expects this momentum to continue during the second half of the year and has reiterated its initial guidance for FY24.

The company does face fierce competition, however, from rival firms such as Uber which can result in severe price wars leading to reduced margins. Rising costs of insurance can also squeeze margins. During Q2, the company’s cost of revenue grew 37% in contrast to last year and was mainly driven by higher insurance costs. Despite these challenges, the overall outlook for Lyft, Inc. (NASDAQ:LYFT) is encouraging.

The management expects gross bookings in Q3 to be between $4 billion and $4.1 billion, up 13-15% from the same period last year. The company has also improved its financial position and it is now on track to achieve positive free cash flow for the full year after solid progress made in Q2, during which it generated $256 million in free cash flow. Lyft, Inc. (NASDAQ:LYFT) has also re-entered into its strategic partnership with Disney as its rideshare provider at Disney World Resort. The agreement also includes a media buy, which is projected to contribute to the company’s growth.

Street analysts anticipate a 24% increase in the company’s share price over the coming months. Moreover, according to Insider Monkey’s database for Q2 2024, 53 hedge funds have investments in Lyft, Inc. (NASDAQ:LYFT), making it one of the best stocks under $15 to buy now.