Uber Technologies (UBER) Falls More Steeply Than Broader Market: What Investors Need to Know

Uber Technologies (UBER) ended the recent trading session at $76.66, demonstrating a -1.45% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.36% for the day. Elsewhere, the Dow saw a downswing of 1.64%, while the tech-heavy Nasdaq depreciated by 1.46%.

Heading into today, shares of the ride-hailing company had gained 10.29% over the past month, outpacing the Computer and Technology sector's loss of 0.24% and the S&P 500's loss of 1.76%.

The investment community will be paying close attention to the earnings performance of Uber Technologies in its upcoming release. The company is predicted to post an EPS of $0.71, indicating a 14.46% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.27 billion, up 15.02% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $3.34 per share and a revenue of $58.04 billion, demonstrating changes of -36.98% and +11.58%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Uber Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.22% lower. Uber Technologies is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Uber Technologies currently has a Forward P/E ratio of 23.32. Its industry sports an average Forward P/E of 14.99, so one might conclude that Uber Technologies is trading at a premium comparatively.

Investors should also note that UBER has a PEG ratio of 7.13 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Services industry stood at 1.82 at the close of the market yesterday.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Uber Technologies, Inc. (UBER): Free Stock Analysis Report

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

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