Uber (UBER - Free Report) is set to report its first quarter fiscal 2020 financial results after the market closes on Thursday, May 7, amid another busy week for corporate earnings. Wall Street and investors will be watching Uber closely for any updates on when its core ride-hailing business might be able to return to something close to normal.
Uber & the Pandemic
Uber went public in May 2019 and it has largely failed to live up the hype, with its stock down 33%. The company’s losses have grown as it fights an expensive race to expand around the world, while also trying to grow Uber Eats. And its food delivery business might be the only division keeping Uber afloat, while nearly all other travel has come to a screeching halt.
The firm in mid-April pulled its 2020 guidance amid all of the uncertainty. Nonetheless, Uber shares have jumped 21% since March 23, which does lag the S&P 500’s 25% comeback.
Investors should also note that Uber has tried to cut costs, as it expands in crowded markets around the world and compete against U.S. rival Lyft (LYFT - Free Report) . That said, Uber still reported a $1.1 billion loss in the fourth quarter of 2019, on 37% higher sales.
Looking ahead, our current Zacks estimates call for Uber’s Q1 sales to climb just 9.1%, with Q2 revenue projected to fall -9.4%. Luckily, Uber is expected to see its adjusted losses shrink significantly in the first quarter, as well as in fiscal 2020 and 2021.
Bottom Line
Uber is a Zacks Rank #3 (Hold) and is part of an industry that rests in the top 19% of our more than 250 Zacks industries. And tech stocks, including giants such as Apple (AAPL - Free Report) , Facebook , and Amazon (AMZN - Free Report) proved their resilience last week (also read: Tech Sector Shows its Earnings Power).
That said, Uber was already struggling to inspire investor confidence, and then the coronavirus washed away a large chunk of its business. Therefore, it is probably best for investors to stay away from Uber stock until people start to go out again. More importantly, it is prudent to wait for Uber to provide coronavirus updates.
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Uber (UBER - Free Report) is set to report its first quarter fiscal 2020 financial results after the market closes on Thursday, May 7, amid another busy week for corporate earnings. Wall Street and investors will be watching Uber closely for any updates on when its core ride-hailing business might be able to return to something close to normal.
Uber & the Pandemic
Uber went public in May 2019 and it has largely failed to live up the hype, with its stock down 33%. The company’s losses have grown as it fights an expensive race to expand around the world, while also trying to grow Uber Eats. And its food delivery business might be the only division keeping Uber afloat, while nearly all other travel has come to a screeching halt.
The firm in mid-April pulled its 2020 guidance amid all of the uncertainty. Nonetheless, Uber shares have jumped 21% since March 23, which does lag the S&P 500’s 25% comeback.
Investors should also note that Uber has tried to cut costs, as it expands in crowded markets around the world and compete against U.S. rival Lyft (LYFT - Free Report) . That said, Uber still reported a $1.1 billion loss in the fourth quarter of 2019, on 37% higher sales.
Looking ahead, our current Zacks estimates call for Uber’s Q1 sales to climb just 9.1%, with Q2 revenue projected to fall -9.4%. Luckily, Uber is expected to see its adjusted losses shrink significantly in the first quarter, as well as in fiscal 2020 and 2021.
Bottom Line
Uber is a Zacks Rank #3 (Hold) and is part of an industry that rests in the top 19% of our more than 250 Zacks industries. And tech stocks, including giants such as Apple (AAPL - Free Report) , Facebook , and Amazon (AMZN - Free Report) proved their resilience last week (also read: Tech Sector Shows its Earnings Power).
That said, Uber was already struggling to inspire investor confidence, and then the coronavirus washed away a large chunk of its business. Therefore, it is probably best for investors to stay away from Uber stock until people start to go out again. More importantly, it is prudent to wait for Uber to provide coronavirus updates.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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