A strong stock as of late has been Uber Technologies (UBER). Shares have been marching higher, with the stock up 11.6% over the past month. The stock hit a new 52-week high of $97.72 in the previous session. Uber has gained 60.2% since the start of the year compared to the 8.1% move for the Zacks Computer and Technology sector and the -4.2% return for the Zacks Internet - Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 7, 2025, Uber reported EPS of $0.83 versus consensus estimate of $0.51.
For the current fiscal year, Uber is expected to post earnings of $2.9 per share on $50.69 in revenues. This represents a -36.4% change in EPS on a 15.27% change in revenues. For the next fiscal year, the company is expected to earn $3.53 per share on $58.4 in revenues. This represents a year-over-year change of 21.82% and 15.21%, respectively.
Valuation Metrics
While Uber has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Uber has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 33.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.3X. On a trailing cash flow basis, the stock currently trades at 19.2X versus its peer group's average of 11.4X. Additionally, the stock has a PEG ratio of 1.23. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Uber currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Uber fits the bill. Thus, it seems as though Uber shares could have a bit more room to run in the near term.
How Does UBER Stack Up to the Competition?
Shares of UBER have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is DoorDash, Inc. (DASH). DASH has a Zacks Rank of #2 (Buy) and a Value Score of F, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. DoorDash, Inc. beat our consensus estimate by 10.00%, and for the current fiscal year, DASH is expected to post earnings of $2.16 per share on revenue of $12.84 billion.
Shares of DoorDash, Inc. have gained 13% over the past month, and currently trade at a forward P/E of 114.03X and a P/CF of 150.97X.
The Internet - Services industry may rank in the bottom 61% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for UBER and DASH, even beyond their own solid fundamental situation.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Uber Technologies, Inc. (UBER): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
