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Uber Technologies (UBER) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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Uber Technologies (UBER - Free Report) closed the most recent trading day at $67.74, moving +0.59% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.88%. Meanwhile, the Dow experienced a rise of 1.24%, and the technology-dominated Nasdaq saw an increase of 0.65%.

Prior to today's trading, shares of the ride-hailing company had gained 8.84% over the past month. This has outpaced the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 1.17% in that time.

Market participants will be closely following the financial results of Uber Technologies in its upcoming release. The company plans to announce its earnings on February 5, 2025. On that day, Uber Technologies is projected to report earnings of $0.56 per share, which would represent a year-over-year decline of 15.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.76 billion, up 18.33% from the year-ago period.

Investors should also pay attention to any latest changes in analyst estimates for Uber Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.69% upward. 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 26.44. Its industry sports an average Forward P/E of 22.25, so one might conclude that Uber Technologies is trading at a premium comparatively.

We can also see that UBER currently has a PEG ratio of 0.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. UBER's industry had an average PEG ratio of 1.56 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 36% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.


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