Uber Technologies (UBER) Dips More Than Broader Market: What You Should Know

In the latest close session, Uber Technologies (UBER) was down 3.7% at $72.34. The stock's performance was behind the S&P 500's daily loss of 0.37%. Meanwhile, the Dow experienced a drop of 0.18%, and the technology-dominated Nasdaq saw a decrease of 0.84%.

The ride-hailing company's shares have seen an increase of 6.22% over the last month, surpassing the Computer and Technology sector's loss of 2.83% and the S&P 500's loss of 3.7%.

The investment community will be paying close attention to the earnings performance of Uber Technologies in its upcoming release. It is anticipated that the company will report an EPS of $0.71, marking a 14.46% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $13.27 billion, indicating a 15.02% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.34 per share and revenue of $58.04 billion, which would represent changes of -36.98% and +11.58%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Uber Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.02% fall in the Zacks Consensus EPS estimate. Uber Technologies is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Uber Technologies is holding a Forward P/E ratio of 22.52. This valuation marks a premium compared to its industry average Forward P/E of 15.43.

Also, we should mention that UBER has a PEG ratio of 6.89. 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 average PEG ratio for the Internet - Services industry stood at 1.77 at the close of the market yesterday.

The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 26% of over 250 industries.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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