Uber Technologies (NYSE:UBER) has experienced a recent surge in performance, reporting a return of +4.2% over the past month. This surpasses the Zacks S&P 500 composite's +0.8% change and outperforms the Zacks Internet - Services industry's 4.1% decrease.
The future direction of Uber's stock is heavily influenced by earnings estimate revisions, which are seen as crucial in determining a stock's fair value and influencing investor decisions. Recent business trends have led sell-side analysts to revise their earnings estimates, potentially leading to an increase in the stock's price.
For the current quarter, Uber is projected to post earnings of $0.13 per share, marking a +121.3% change from the same quarter last year. However, the Zacks Consensus Estimate has been revised down by -2% over the last 30 days.
The consensus earnings estimate for the current fiscal year is $0.41 per share, indicating a year-over-year change of +108.8%. This estimate has also been revised down by -2% over the past month. Looking ahead to the next fiscal year, Uber's consensus earnings estimate is $1.10 per share, suggesting a +169.4% change from its reported earnings last year. This estimate was revised up by +2.2% over the past month.
Based on these factors and its recent performance, Uber has been assigned a Zacks Rank #1 (Strong Buy), suggesting strong potential for outperformance in the near term.
In terms of sales estimates for the current quarter, Uber's consensus figure is $9.47 billion, indicating a year-over-year growth of +13.5%. The sales estimates for the current and next fiscal years are $37.42 billion and $44.09 billion respectively, showing growth rates of +17.4% and +17.8%.
In its last reported quarter, Uber revealed revenues of $9.23 billion and an EPS of $0.18, a significant improvement from -$1.33 a year ago.
Despite this strong performance and positive future outlook, Uber's valuation multiples suggest that it is trading at a premium to its peers, resulting in a Zacks Value Style Score of F.
InvestingPro Insights
Drawing from InvestingPro's real-time data and insights, Uber's financial health and market performance can be further analyzed. With a market capitalization of 97.93 billion USD, Uber holds a substantial place in the Ground Transportation industry. However, its P/E ratio stands at -254.12, indicating that the company is currently not profitable. This is further supported by its negative operating income of -573 million USD in the last twelve months as of Q2 2023.
Yet, InvestingPro Tips suggest that Uber's net income is expected to grow this year, and analysts predict that the company will be profitable within the year. This aligns with the Zacks Consensus Estimate, which projects a significant increase in Uber's earnings per share in the current and next fiscal years.
In terms of return, Uber has shown a significant return over the last week and year. Specifically, the company reported a 12.73% return over the past week and a 61.78% return over the past year. These figures highlight the strong potential for Uber's stock to outperform in the near term.
Lastly, it should be noted that Uber operates with a moderate level of debt and does not pay a dividend to shareholders. These are important factors for investors to consider when evaluating the company's financial stability and return on investment.
For more in-depth analysis and additional tips, consider using InvestingPro, which currently lists 10 more tips related to Uber's financial performance and market position.
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