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Uber Technologies (UBER) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest close session, Uber Technologies (UBER - Free Report) was down 2.3% at $97.80. This move lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.67%.

Shares of the ride-hailing company witnessed a gain of 6.08% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 7.44%, and outperforming the S&P 500's gain of 4.06%.

Analysts and investors alike will be keeping a close eye on the performance of Uber Technologies in its upcoming earnings disclosure. The company is expected to report EPS of $0.67, down 44.17% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $13.25 billion, indicating a 18.47% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.9 per share and revenue of $51.41 billion. These totals would mark changes of -36.4% and +16.9%, respectively, from last year.

Any recent changes to analyst estimates for Uber Technologies should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 remained unchanged. Uber Technologies presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Uber Technologies is holding a Forward P/E ratio of 34.55. This indicates a premium in contrast to its industry's Forward P/E of 25.21.

The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 71, this industry ranks in the top 29% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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