Back to top

Image: Bigstock

Why Uber Technologies (UBER) Outpaced the Stock Market Today

Read MoreHide Full Article

In the latest trading session, Uber Technologies (UBER - Free Report) closed at $74.27, marking a +1.18% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.03%. Meanwhile, the Dow experienced a rise of 0.41%, and the technology-dominated Nasdaq saw an increase of 0.12%.

The ride-hailing company's stock has dropped by 3.04% in the past month, falling short of the Computer and Technology sector's loss of 0.55% and the S&P 500's loss of 0.9%.

The investment community will be closely monitoring the performance of Uber Technologies in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.21, reflecting a 362.5% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $10.07 billion, showing a 14.14% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.20 per share and a revenue of $43.28 billion, representing changes of +37.93% and +16.09%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Uber Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.6% rise in the Zacks Consensus EPS estimate. Uber Technologies is holding a Zacks Rank of #1 (Strong Buy) right now.

In the context of valuation, Uber Technologies is at present trading with a Forward P/E ratio of 61.17. This represents a premium compared to its industry's average Forward P/E of 23.06.

Investors should also note that UBER has a PEG ratio of 1.18 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services industry currently had an average PEG ratio of 1.77 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 25% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Uber Technologies, Inc. (UBER) - free report >>

Published in