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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 $87.59, moving +1.62% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.01%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.44%.

The ride-hailing company's stock has climbed by 2.41% in the past month, exceeding the Computer and Technology sector's loss of 0.69% and the S&P 500's gain of 0.86%.

Investors will be eagerly watching for the performance of Uber Technologies in its upcoming earnings disclosure. On that day, Uber Technologies is projected to report earnings of $0.83 per share, which would represent a year-over-year decline of 74.14%. In the meantime, our current consensus estimate forecasts the revenue to be $14.29 billion, indicating a 19.49% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.36 per share and a revenue of $51.92 billion, representing changes of +17.54% and 0%, respectively, from the prior year.

Any recent changes to analyst estimates for Uber Technologies should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 a 0.73% rise in the Zacks Consensus EPS estimate. Uber Technologies currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Uber Technologies is currently being traded at a Forward P/E ratio of 23.92. For comparison, its industry has an average Forward P/E of 18.08, which means Uber Technologies is trading at a premium to the group.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 42% 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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