Markets

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

Uber Technologies (UBER) closed the most recent trading day at $32.35, moving -1.4% from the previous trading session. This change lagged the S&P 500's 0.34% loss on the day. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.73%.

Heading into today, shares of the ride-hailing company had lost 1.44% over the past month, lagging the Computer and Technology sector's gain of 7.57% and the S&P 500's gain of 5.71% in that time.

UBER will be looking to display strength as it nears its next earnings release, which is expected to be August 6, 2020. On that day, UBER is projected to report earnings of -$0.78 per share, which would represent year-over-year growth of 83.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.17 billion, down 31.4% from the year-ago period.

UBER's full-year Zacks Consensus Estimates are calling for earnings of -$3.62 per share and revenue of $12.98 billion. These results would represent year-over-year changes of +46.84% and -8.21%, respectively.

Any recent changes to analyst estimates for UBER should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.23% lower. UBER is currently a Zacks Rank #3 (Hold).

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 36% 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.

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


Click to get this free report

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

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More