Uber Technologies (UBER) Exceeds Market Returns: Some Facts to Consider
In the latest market close, Uber Technologies (UBER) reached $74.71, with a +1.04% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.15%.
Coming into today, shares of the ride-hailing company had lost 0.48% in the past month. In that same time, the Computer and Technology sector lost 0.02%, while the S&P 500 gained 2%.
The upcoming earnings release of Uber Technologies will be of great interest to investors. The company's upcoming EPS is projected at $0.39, signifying a 290% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $11.01 billion, indicating a 18.44% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.06 per share and a revenue of $43.44 billion, indicating changes of +21.84% and +16.53%, respectively, from the former year.
Investors should also note any recent changes to 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 company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 witnessed a 1.53% increase. As of now, Uber Technologies holds a Zacks Rank of #3 (Hold).
Investors should also note Uber Technologies's current valuation metrics, including its Forward P/E ratio of 69.93. This valuation marks a premium compared to its industry's average Forward P/E of 29.44.
It's also important to note that UBER currently trades at a PEG ratio of 1.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry had an average PEG ratio of 1.8 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 137, which puts it in the bottom 46% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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