Uber Technologies (UBER) closed at $40.99 in the latest trading session, marking a +1.81% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 4.09%.
Prior to today's trading, shares of the ride-hailing company had gained 4.79% over the past month. This has lagged the Computer and Technology sector's gain of 9.32% and outpaced the S&P 500's gain of 3.98% in that time.
Investors will be hoping for strength from Uber Technologies as it approaches its next earnings release. On that day, Uber Technologies is projected to report earnings of -$0.04 per share, which would represent year-over-year growth of 96.99%. Our most recent consensus estimate is calling for quarterly revenue of $9.31 billion, up 15.37% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.06 per share and revenue of $37.48 billion, which would represent changes of +101.29% and +17.58%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Uber Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, the Zacks Consensus EPS estimate has moved 3.45% higher. Uber Technologies is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Uber Technologies is holding a Forward P/E ratio of 626.27. This valuation marks a premium compared to its industry's average Forward P/E of 22.99.
We can also see that UBER currently has a PEG ratio of 14.06. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report