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Here's Why Investors Should Add UBER Stock to Their Portfolio
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Uber Technologies (UBER - Free Report) shares have performed well on the bourse over the past year driven by multiple tailwinds. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s take a look at the factors that make the stock a strong investment pick at the moment.
Strong Price Performance: A glimpse at the company’s price trend reveals that its shares have surged 139.9% in the past year, surpassing the industry’s 48.9% growth.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: UBER currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. 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, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions:
The Zacks Consensus Estimate for the current quarter has been revised upward by 23.5% over the past 60 days. For the current year, the consensus mark for earnings has moved 14.4% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Impressive Earnings Surprise History: UBER has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 559.2%.
Driving Factors: Uber’s delivery business gains from rising online order volumes. The company’s efforts to expand its delivery operations through successive acquisitions are encouraging. Continued recovery in mobility operations is aiding it.
Following the removal of COVID-19 restrictions, it is seeing continued improvement in demand for mobility. In fourth-quarter 2023, mobility revenues jumped 34% year over year to $5.53 billion as ride volumes continued to rebound, while gross bookings from the unit improved 29% to $19.28 billion. For the first quarter of 2024, Uber expects gross bookings to be between $37 billion and $38.5 billion.
Bullish Industry Rank: The industry to which UBER belongs currently has a Zacks Industry Rank of 45 (250 plus groups). Such a good rank places UBER in the top 18% of Zacks Industries. Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.
A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Therefore, reckoning the industry’s performance becomes imperative.
Other Stocks to Consider
Investors interested in the broader Computer and Technology sector may also consider stocks like Fortive Corporation (FTV - Free Report) and Garmin Ltd. (GRMN - Free Report) . Each stock currently carries a Zacks Rank #2.
Fortive’s performance is being driven by healthy traction across Intelligent Operating Solutions and Healthcare business segments. Solid customer demand across most geographies, and continued strength in software and other recurring revenue businesses are tailwinds.
The Zacks Consensus Estimate for current-year earnings has inched up 0.5% in the past 60 days at FTV. It has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 3%.
Garmin is benefiting from strong momentum across the Outdoor and Fitness segments. While strength in the Fitness segment is primarily attributed to advanced wearables demand, Outdoor revenues are driven by increasing demand for adventure watches. Strength across the Auto OEM segment, owing to increased shipments of domain controllers, is a plus. Growing focus on continued innovation, diversification and market expansion to explore opportunities across all business segments is a major positive.
The Zacks Consensus Estimate for current-year earnings has inched up 2.1% in the past 60 days at Garmin. GRMN has a stellar earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 8.9%.
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Here's Why Investors Should Add UBER Stock to Their Portfolio
Uber Technologies (UBER - Free Report) shares have performed well on the bourse over the past year driven by multiple tailwinds. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Let’s take a look at the factors that make the stock a strong investment pick at the moment.
Strong Price Performance: A glimpse at the company’s price trend reveals that its shares have surged 139.9% in the past year, surpassing the industry’s 48.9% growth.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: UBER currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. 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, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions:
The Zacks Consensus Estimate for the current quarter has been revised upward by 23.5% over the past 60 days. For the current year, the consensus mark for earnings has moved 14.4% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Impressive Earnings Surprise History: UBER has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 559.2%.
Driving Factors: Uber’s delivery business gains from rising online order volumes. The company’s efforts to expand its delivery operations through successive acquisitions are encouraging. Continued recovery in mobility operations is aiding it.
Following the removal of COVID-19 restrictions, it is seeing continued improvement in demand for mobility. In fourth-quarter 2023, mobility revenues jumped 34% year over year to $5.53 billion as ride volumes continued to rebound, while gross bookings from the unit improved 29% to $19.28 billion. For the first quarter of 2024, Uber expects gross bookings to be between $37 billion and $38.5 billion.
Bullish Industry Rank: The industry to which UBER belongs currently has a Zacks Industry Rank of 45 (250 plus groups). Such a good rank places UBER in the top 18% of Zacks Industries. Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.
A mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Therefore, reckoning the industry’s performance becomes imperative.
Other Stocks to Consider
Investors interested in the broader Computer and Technology sector may also consider stocks like Fortive Corporation (FTV - Free Report) and Garmin Ltd. (GRMN - Free Report) . Each stock currently carries a Zacks Rank #2.
Fortive’s performance is being driven by healthy traction across Intelligent Operating Solutions and Healthcare business segments. Solid customer demand across most geographies, and continued strength in software and other recurring revenue businesses are tailwinds.
The Zacks Consensus Estimate for current-year earnings has inched up 0.5% in the past 60 days at FTV. It has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 3%.
Garmin is benefiting from strong momentum across the Outdoor and Fitness segments. While strength in the Fitness segment is primarily attributed to advanced wearables demand, Outdoor revenues are driven by increasing demand for adventure watches. Strength across the Auto OEM segment, owing to increased shipments of domain controllers, is a plus. Growing focus on continued innovation, diversification and market expansion to explore opportunities across all business segments is a major positive.
The Zacks Consensus Estimate for current-year earnings has inched up 2.1% in the past 60 days at Garmin. GRMN has a stellar earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 8.9%.