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Why the Market Dipped But Uber Technologies (UBER) Gained Today

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Uber Technologies (UBER - Free Report) ended the recent trading session at $61.41, demonstrating a +0.38% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.54% loss on the day. Meanwhile, the Dow experienced a drop of 0.53%, and the technology-dominated Nasdaq saw a decrease of 0.66%.

Shares of the ride-hailing company have depreciated by 14.03% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 1.5%.

The investment community will be paying close attention to the earnings performance of Uber Technologies in its upcoming release. The company is predicted to post an EPS of $0.55, indicating a 16.67% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $11.78 billion, showing a 18.51% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.89 per share and revenue of $43.78 billion. These totals would mark changes of +117.24% and +17.43%, respectively, from last year.

Any recent changes to analyst estimates for Uber Technologies should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 moved 3.62% higher. Uber Technologies currently has a Zacks Rank of #2 (Buy).

Investors should also note Uber Technologies's current valuation metrics, including its Forward P/E ratio of 32.35. This indicates a premium in contrast to its industry's Forward P/E of 24.45.

We can additionally observe that UBER currently boasts a PEG ratio of 0.76. 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. The Internet - Services industry had an average PEG ratio of 2.2 as trading concluded yesterday.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 31, positioning it in the top 13% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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