/Uber%20Technologies%20Inc%20logo%20on%20phone-by%20DenPhotos%20via%20Shutterstock.jpg)
Uber Technologies, Inc. (UBER), headquartered in San Francisco, California, develops and operates proprietary technology applications and provides ride-hailing services. Valued at $153.9 billion by market cap, the company develops applications for road transportation, navigation, ride-sharing, and payment processing solutions.
Shares of this ride-hailing giant have outperformed the broader market considerably over the past year. UBER has gained 67.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.2%. In 2024 alone, UBER’s stock rose 19%, compared to the SPX’s 20.1% rise on a YTD basis.
Zooming in further, UBER’s outperformance looks more pronounced compared to SPDR S&P Transportation ETF (XTN). The exchange-traded fund has gained about 24.9% over the past year. Moreover, UBER’s gains on a YTD basis outshine the ETF’s 1.1% returns over the same time frame.
UBER's success can be attributed to its unique advantage of offering multiple services within a single mobile app, allowing for efficient cross-selling opportunities. The company's ability to leverage its scale provides a competitive edge by enabling continuous enhancements in ride dispatching, routing, and pricing through data-driven insights. Additionally, UBER's expansive reach and data capabilities enable it to facilitate targeted advertising for advertisers looking to connect with consumers through the mobile app.
On Oct. 31, UBER shares closed down more than 9% after reporting its Q3 results. Its EPS of $1.20 beat Wall Street expectations of $0.41. The company’s revenue was $11.2 billion, topping Wall Street forecasts of $11 billion.
For the current fiscal year, ending in December, analysts expect UBER’s EPS to grow 25.3% to $1.09 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 44 analysts covering UBER stock, the consensus is a “Strong Buy.” That’s based on 36 “Strong Buy” ratings, three “Moderate Buys,” and five “Holds.”
This configuration is less bullish than a month ago, with 37 analysts suggesting a “Strong Buy.”
On Nov. 1, Truist Financial Corporation (TFC) maintained a “Buy” rating and lowered the price target on UBER to $95, implying a potential upside of 29.7% from current levels.
The mean price target of $91.26 represents a 24.6% premium to UBER’s current price levels. The Street-high price target of $120 suggests an ambitious upside potential of 63.8%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
