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Here's Why Uber Technologies (UBER) Fell More Than Broader Market

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Uber Technologies (UBER - Free Report) closed the most recent trading day at $80.41, moving -0.06% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.05%. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.18%.

Shares of the ride-hailing company witnessed a gain of 7.7% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.5% and the S&P 500's gain of 2.76%.

Analysts and investors alike will be keeping a close eye on the performance of Uber Technologies in its upcoming earnings disclosure. The company's earnings report is set to go public on October 31, 2024. The company is predicted to post an EPS of $0.41, indicating a 310% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $11 billion, indicating a 18.38% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.08 per share and a revenue of $43.43 billion, representing changes of +24.14% and +16.5%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Uber Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, there's been a 2.38% rise in the Zacks Consensus EPS estimate. Uber Technologies is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Uber Technologies is presently being traded at a Forward P/E ratio of 74.33. This expresses a premium compared to the average Forward P/E of 37.76 of its industry.

We can additionally observe that UBER currently boasts a PEG ratio of 1.4. 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 2.34 based on yesterday's closing prices.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 29% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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