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Here's Why Investors Should Add UBER Stock in Portfolio Now
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Uber Technologies, Inc. (UBER - Free Report) performed well in the past year and has potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 99.5% in the past year compared with 16.5% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: Uber currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, UBER seems to be an appropriate investment proposition at the moment.You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Fourteen estimates for 2023 moved north in the past 60 days versus one southward revision, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2023 earnings per share (EPS) of 5 cents has revised upward from a loss of 16 cents in the past 60 days.
Strong Growth Prospects: The Zacks Consensus Estimate for 2023 EPS is pegged at 5 cents, which reflects year-over-year growth of more than 100%. Moreover, the bottom line is expected to surge more than 100% in 2024 as well. Its long-term EPS growth rate is anticipated to be 44.5%.
Driving Factors: Uber’s Delivery business is witnessing a boom with online order volumes surging amid the pandemic. Revenues from the segment increased 23% year over year in first-quarter 2023, while gross bookings augmented 8%. Adjusted EBITDA was $288 million compared with $30 million in the year-ago quarter.
Continued recovery in the Mobility business is encouraging. With increased vaccinations in the United States and some other key markets, the company is seeing uninterrupted improvement in demand for this segment. Segmental revenues jumped 72% year over year to $4,330 million in first-quarter 2023 as ride volumes continued to rebound. Gross bookings from the unit, which improved 40% to $14,981 million, also resulted in this upside. For the second quarter of 2023, Uber expects gross bookings to be between $33 billion and $34 billion.
Other Stocks to Consider
Some other top-ranked stocks for investors interested in the Zacks Transportation sector are Copa Holdings, S.A. (CPA - Free Report) and Triton International Limited .
Copa Holdings, which presently flaunts a Zacks Rank #1, is aided by improved air-travel demand. We are encouraged by the company’s initiatives to modernize its fleet. CPA's focus on its cargo segment is also impressive.
For second-quarter and full-year 2023, CPA’s earnings are expected to register 765.6% and 75.4% growth, respectively, on a year-over-year basis.
Triton, which currently carries a Zacks Rank #2, is benefiting from its consistent efforts to reward shareholders through dividends and share repurchases.
Triton has an impressive liquidity position. TRTN’s current ratio (a measure of liquidity) was 3.97 at the end of first-quarter 2023. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.
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Here's Why Investors Should Add UBER Stock in Portfolio Now
Uber Technologies, Inc. (UBER - Free Report) performed well in the past year and has potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 99.5% in the past year compared with 16.5% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: Uber currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, UBER seems to be an appropriate investment proposition at the moment.You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Fourteen estimates for 2023 moved north in the past 60 days versus one southward revision, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2023 earnings per share (EPS) of 5 cents has revised upward from a loss of 16 cents in the past 60 days.
Strong Growth Prospects: The Zacks Consensus Estimate for 2023 EPS is pegged at 5 cents, which reflects year-over-year growth of more than 100%. Moreover, the bottom line is expected to surge more than 100% in 2024 as well. Its long-term EPS growth rate is anticipated to be 44.5%.
Driving Factors: Uber’s Delivery business is witnessing a boom with online order volumes surging amid the pandemic. Revenues from the segment increased 23% year over year in first-quarter 2023, while gross bookings augmented 8%. Adjusted EBITDA was $288 million compared with $30 million in the year-ago quarter.
Continued recovery in the Mobility business is encouraging. With increased vaccinations in the United States and some other key markets, the company is seeing uninterrupted improvement in demand for this segment. Segmental revenues jumped 72% year over year to $4,330 million in first-quarter 2023 as ride volumes continued to rebound. Gross bookings from the unit, which improved 40% to $14,981 million, also resulted in this upside. For the second quarter of 2023, Uber expects gross bookings to be between $33 billion and $34 billion.
Other Stocks to Consider
Some other top-ranked stocks for investors interested in the Zacks Transportation sector are Copa Holdings, S.A. (CPA - Free Report) and Triton International Limited .
Copa Holdings, which presently flaunts a Zacks Rank #1, is aided by improved air-travel demand. We are encouraged by the company’s initiatives to modernize its fleet. CPA's focus on its cargo segment is also impressive.
For second-quarter and full-year 2023, CPA’s earnings are expected to register 765.6% and 75.4% growth, respectively, on a year-over-year basis.
Triton, which currently carries a Zacks Rank #2, is benefiting from its consistent efforts to reward shareholders through dividends and share repurchases.
Triton has an impressive liquidity position. TRTN’s current ratio (a measure of liquidity) was 3.97 at the end of first-quarter 2023. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.