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Uber Technologies (UBER) Dips More Than Broader Market: What You Should Know

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The most recent trading session ended with Uber Technologies (UBER - Free Report) standing at $70.06, reflecting a -1.13% shift from the previouse trading day's closing. This move lagged the S&P 500's daily loss of 0.04%. On the other hand, the Dow registered a loss of 0.15%, and the technology-centric Nasdaq increased by 0.12%.

The ride-hailing company's shares have seen an increase of 7.28% over the last month, surpassing the Computer and Technology sector's loss of 2.27% and the S&P 500's gain of 4.15%.

The investment community will be paying close attention to the earnings performance of Uber Technologies in its upcoming release. On that day, Uber Technologies is projected to report earnings of $0.31 per share, which would represent year-over-year growth of 72.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.57 billion, up 14.48% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.84 per share and a revenue of $43.25 billion, representing changes of -3.45% and +16.02%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Uber Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.91% decrease. Uber Technologies is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Uber Technologies is currently being traded at a Forward P/E ratio of 84.14. This represents a premium compared to its industry's average Forward P/E of 22.58.

We can additionally observe that UBER currently boasts a PEG ratio of 1.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 2.1.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% 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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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