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Uber Technologies (UBER) Outperforms Broader Market: What You Need to Know

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Uber Technologies (UBER - Free Report) closed the most recent trading day at $99.57, moving +1.14% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.26%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.48%.

The stock of ride-hailing company has risen by 5.01% in the past month, lagging the Computer and Technology sector's gain of 7.4% and overreaching the S&P 500's gain of 2.87%.

The investment community will be closely monitoring the performance of Uber Technologies in its forthcoming earnings report. The company's upcoming EPS is projected at $0.67, signifying a 44.17% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $13.25 billion, reflecting a 18.47% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.91 per share and revenue of $51.41 billion, which would represent changes of -36.18% and +16.9%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Uber Technologies. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Uber Technologies is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Uber Technologies is at present trading with a Forward P/E ratio of 33.87. This valuation marks a premium compared to its industry average Forward P/E of 24.77.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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