UBER to be a Part of S&P 100: Is it a Sign of More Upside?

Uber Technologies UBER recently received encouraging tidings when it was announced that the U.S. ride-hailing giant will join the coveted S&P 100 index on Sept. 22, before the market opens, as part of the quarterly rebalance.

The S&P 100, a subset of the S&P 500, is designed to track the performance of large-cap companies in the United States. It comprises 100 leading blue-chip companies across a broad range of industry groups. UBER will replace Charter Communications CHTR in the S&P 100 index.

Charter Communications will, however, remain in the S&P 500. The change ensures that the index is more representative of its market capitalization range. UBER’s market capitalization is currently $189.8 billion, way above Charter Communications’ $35.8 billion.

To be included in the S&P 100, a company must not have liquidity concerns and demonstrate solid financial health. UBER has no concerns in that respect, having exited the second quarter of 2025 with cash and cash equivalents (including short-term investments and restricted cash and cash equivalents) of $8.6 billion and no near-term debts. UBER exited the second quarter of 2025 with a current ratio (a measure of liquidity) of 1.11.

Apart from dominating North America’s ride-sharing market, UBER has excelled on the diversification front. To expand its retail reach, UBER recently inked deals with retailers, Dollar Tree DLTR and Dollar General DG. The deal with Dollar Tree was in line with its efforts to expand service offerings, particularly in suburban and rural America. This has enhanced UBER’s retail delivery capabilities by adding nearly 9,000 stores to the Uber Eats platform. Uber Eats is the online food ordering and delivery platform of Uber.

The tie-up with Dollar General ensured that its more than 14,000 locations arrived on the Uber Eats platform. Following the association with Dollar General, customers can use the Uber Eats app to order food, beverages and other essentials.

UBER’s Share Price Performance, Valuation and Estimates

Shares of UBER have gained in double digits so far this year despite the tariff-related uncertainty. Courtesy of the upbeat performance, UBER’s shares have handily outperformed its industry on a year-to-date basis.

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From a valuation standpoint, UBER trades at a forward 12-month price-to-sales ratio of 3.33X. UBER is inexpensive compared with its industry.

The Zacks Consensus Estimate for full-year 2025 and full-year 2026 has remained stable over the past seven days.

UBER's Zacks Rank

UBER currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.   
 

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research