Could Uber (UBER) Keep Going Up as Analysts Expect It to Earn More?
Uber Technologies (UBER) could be a good addition to your investments because analysts think the company will make more money than they first expected. Lately, the company's stock has been going up, and it might keep going up because people are more optimistic about how much money Uber will make.
When analysts change their predictions about how much a company will earn, it usually affects the company's stock price. This is something we've seen happen many times before, according to research. This idea is the basis of a tool we use to rate stocks called the Zacks Rank.
The Zacks Rank system ranks stocks from #1 (Strong Buy) to #5 (Strong Sell). Stocks with a Zacks Rank #1 have performed really well in the past, giving investors an average return of +25% each year since 2008.
Analysts have been changing their predictions for Uber's earnings for this quarter and the whole year, raising them by a lot.
For this quarter, they think Uber will earn $0.19 per share, which is a big increase from what they predicted last year.
Over the past month, the average prediction for Uber's earnings has gone up by 23.48%. Eight analysts think Uber will earn more, while only one thinks it will earn less.
For the whole year, analysts expect Uber to earn $1.17 per share, which is also a big increase from last year.
In the past month, eight analysts have raised their predictions for Uber's earnings, while three have lowered them. This has made the average prediction go up by 7.17%.
Because of these positive changes in predictions, Uber has a Zacks Rank #2 (Buy). Stocks with Zacks Rank #1 and #2 have historically performed better than the S&P 500.
Overall, because analysts think Uber will make more money than they first thought, it might be a good idea to consider adding Uber to your investments.