Investors might want to bet on Uber Technologies (UBER Quick QuoteUBER - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this ride-hailing company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Uber, as there has been strong agreement among the covering analysts in raising estimates.

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $0.51 per share, which is a change of +259.38% from the year-ago reported number.

Over the last 30 days, the Zacks Consensus Estimate for Uber has increased 9.12% because eight estimates have moved higher while one has gone lower.

Current-Year Estimate Revisions

The company is expected to earn $2.54 per share for the full year, which represents a change of -44.3% from the prior-year number.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, 13 estimates have moved up for Uber versus two negative revisions. This has pushed the consensus estimate 5.45% higher.

Favorable Zacks Rank

Thanks to promising estimate revisions, Uber currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Investors have been betting on Uber because of its solid estimate revisions, as evident from the stock's 19% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.