This story originally appeared on Zacks

Lemonade (LMND) closed the most recent trading day at $31.60, moving +1.09% from the previous trading session. This move outpaced the S&P 500’s daily loss of 1.1%. Elsewhere, the Dow lost 0.89%, while the tech-heavy Nasdaq added 0.03%.

Heading into today, shares of the company had lost 30.61% over the past month, lagging the Finance sector’s gain of 2.59% and the S&P 500’s loss of 1.81% in that time.

Lemonade will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$1.13, down 88.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $39.35 million, up 91.95% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Lemonade. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lemonade is currently a Zacks Rank #3 (Hold).

The Insurance – Multi line industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 20% 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.

To follow LMND in the coming trading sessions, be sure to utilize Zacks.com.

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