Uber is graded F on this front, indicating that it is trading at a premium to its peers. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.Ĭomparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.Īs part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B B is better than C and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. No investment decision can be efficient without considering a stock's valuation. The company topped consensus revenue estimates three times over this period. Over the last four quarters, Uber surpassed consensus EPS estimates three times. EPS of $0.18 for the same period compares with -$1.33 a year ago.Ĭompared to the Zacks Consensus Estimate of $9.32 billion, the reported revenues represent a surprise of -0.97%. Uber reported revenues of $9.23 billion in the last reported quarter, representing a year-over-year change of +14.3%. Last Reported Results and Surprise History The $37.4 billion and $44.27 billion estimates for the current and next fiscal years indicate changes of +17.3% and +18.4%, respectively.
In the case of Uber, the consensus sales estimate of $9.46 billion for the current quarter points to a year-over-year change of +13.3%. Therefore, knowing a company's potential revenue growth is crucial.
It's almost impossible for a company to grow its earnings without growing its revenue for long periods. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:Įven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. Over the last 30 days, this estimate has changed +476.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +245.7%.įor the current fiscal year, the consensus earnings estimate of $0.42 points to a change of +109% from the prior year. Uber is expected to post earnings of $0.13 per share for the current quarter, representing a year-over-year change of +121.3%. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. When earnings estimates for a company go up, the fair value for its stock goes up as well.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. The key question now is: What could be the stock's future direction?Īlthough media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
During this period, the Zacks Internet - Services industry, which Uber falls in, has gained 2.2%. Over the past month, shares of this ride-hailing company have returned -7%, compared to the Zacks S&P 500 composite's -1.4% change. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Uber Technologies (UBER) is one of the stocks most watched by visitors lately.
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