In This Article:
Uber Technologies (UBER) closed the latest trading day at $65.70, indicating a -0.41% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.86%, while the tech-heavy Nasdaq lost 0.38%.
Prior to today's trading, shares of the ride-hailing company had gained 10.08% over the past month. This has outpaced the Computer and Technology sector's loss of 1.29% and the S&P 500's loss of 2.2% in that time.
The investment community will be closely monitoring the performance of Uber Technologies in its forthcoming earnings report. On that day, Uber Technologies is projected to report earnings of $0.55 per share, which would represent a year-over-year decline of 16.67%. At the same time, our most recent consensus estimate is projecting a revenue of $11.77 billion, reflecting a 18.46% rise from the equivalent quarter last year.
Any recent changes to analyst estimates for Uber Technologies should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 past month, the Zacks Consensus EPS estimate has shifted 0.22% downward. As of now, Uber Technologies holds a Zacks Rank of #3 (Hold).
With respect to valuation, Uber Technologies is currently being traded at a Forward P/E ratio of 26.1. Its industry sports an average Forward P/E of 21.96, so one might conclude that Uber Technologies is trading at a premium comparatively.
We can also see that UBER currently has a PEG ratio of 0.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Services industry had an average PEG ratio of 1.57.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 40, placing it within the top 16% of over 250 industries.