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Why Uber Technologies (UBER) Dipped More Than Broader Market Today

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Uber Technologies (UBER - Free Report) closed the most recent trading day at $83.44, moving -1.56% from the previous trading session. This move lagged the S&P 500's daily loss of 0.03%. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.13%.

The stock of ride-hailing company has fallen by 7.74% in the past month, lagging the Computer and Technology sector's gain of 3.02% and the S&P 500's gain of 0.6%.

Analysts and investors alike will be keeping a close eye on the performance of Uber Technologies in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.61, indicating a 29.79% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $12.45 billion, reflecting a 16.33% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.9 per share and a revenue of $50.69 billion, indicating changes of -36.4% and +15.27%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Uber Technologies. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.13% higher. Currently, Uber Technologies is carrying a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Uber Technologies has a Forward P/E ratio of 29.27 right now. This expresses a premium compared to the average Forward P/E of 18.6 of its industry.

Also, we should mention that UBER has a PEG ratio of 1.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services industry had an average PEG ratio of 1.34 as trading concluded yesterday.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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