The ride-hailing and food delivery giant Uber Technologies (UBER Quick QuoteUBER - Free Report) is up 79.6% this year and has gained 15.5% past month. The stock has a Zacks Rank #2 (Buy) and an upbeat VGM (Value-Growth-Momentum) score of B.

Continued recovery in the Mobility business is encouraging. Uber is benefiting from the ebbing pandemic and a rebound in demand for travel-related services.

Mobility revenues jumped 72% year over year to $4,330 million in first-quarter 2023 as ride volumes continued to rebound, while gross bookings from the unit improved 40%. Inflation appears to be leading more drivers to join Uber's platform.

Although higher gas and vehicle prices can take a bite into drivers' profits, rising grocery and other living costs are prompting more people to drive for Uber to earn some extra bucks. A rise in car ownership costs is also leading many consumers to opt for cab rides. New rideshare products like pre-booking, shared rides, car rentals and car-sharing are also contributing to Uber’s growth in the industry.

Amid higher demand, number of active drivers have been growing, erasing worries about the dearth of drivers’ signing up. In the United States, Uber’s position is at a nearly six-year high. Uber’s Delivery business is witnessing a boom with online order volumes surging since the pandemic. Revenues from the segment increased 23% year over year in the first quarter of 2023, while gross bookings from the unit augmented 8%.

Analysts Agreement - Estimate Revisions

Over the last 60 and 30 days, earnings estimates for the coming quarter have been raised by 12 and one out of 15 analysts, respectively. Earnings estimates for the full-year 2023 has been increased by 14 out of 15 analysts over the 60 days period and two boosted the same in the past one-month frame, at the time of writing.

Magnitude – Zacks Consensus Estimate Trend

The current Zacks Consensus Estimate for earnings for the June quarter is negative 0.02 per share. The Most Accurate Estimate is negative $0.02 per share. Two months ago, the estimate was negative $0.08 per share. The current Zacks Consensus Estimate for 2023 was 0.05 while two months ago, the estimate was negative 0.16, at the time of writing.

Any Wall of Worry?

Uber continues to witness escalating costs and expenses owing to rise in sales and marketing expenses and cost of revenues. Increased spending on driver incentives is also pushing up costs. This is likely to weigh on the company's bottom line. High debt is another concern.

Do Uber-Heavy ETFs Provide Better Route?

Against this backdrop, investors who are worried about the high debt-load of Uber, can bet on the Uber-heavy ETFs.

iShares US Transportation ETF (IYT Quick QuoteIYT - Free Report) – Uber has about 11.74% weight

First Trust US Equity Opportunities ETF (FPX Quick QuoteFPX - Free Report) – Uber has about 9.53% weight

Clockwise Capital Innovation ETF (TIME Quick QuoteTIME - Free Report) – Uber has about 6.94% weight

Franklin Disruptive Commerce ETF (BUYZ Quick QuoteBUYZ - Free Report) – Uber has about 5.02% weight