Markets

Uber Technologies (UBER) Gains As Market Dips: What You Should Know

Uber Technologies (UBER) closed at $34.22 in the latest trading session, marking a +1.48% move from the prior day. This move outpaced the S&P 500's daily loss of 1.63%. Elsewhere, the Dow lost 1.44%, while the tech-heavy Nasdaq lost 1.65%.

Coming into today, shares of the ride-hailing company had lost 9.01% in the past month. In that same time, the Computer and Technology sector gained 5.81%, while the S&P 500 gained 2.86%.

Investors will be hoping for strength from UBER as it approaches its next earnings release, which is expected to be November 5, 2020. The company is expected to report EPS of -$0.59, up 13.24% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.14 billion, down 17.58% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$3.82 per share and revenue of $12.76 billion. These totals would mark changes of +43.91% and -9.79%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for UBER. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. UBER is holding a Zacks Rank of #3 (Hold) right now.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow UBER in the coming trading sessions, be sure to utilize Zacks.com.


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

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