UBER TECHNOLOGIES INC (NYSE:UBER) Shows Strong Growth and Technical Breakout Potential

Combining solid fundamental growth metrics with positive technical patterns is a strategy many investors use to find stocks with both momentum and strong financial performance. This method focuses on companies showing steady revenue and earnings increases (fundamental growth) while also displaying price movements that hint at possible breakout chances (technical setup). UBER TECHNOLOGIES INC (NYSE:UBER) stands out as a potential fit for this strategy, with improving growth fundamentals and encouraging chart trends.

Fundamental Strength: Growth at Scale

UBER’s fundamental performance meets several important growth-investing criteria detailed in our growth investing primer:

• Revenue Momentum: Revenue increased 18.15% year-over-year, with a 3-year CAGR of 27.6%, showing steady demand across its Mobility, Delivery, and Freight segments.
• Earnings Acceleration: EPS rose 214.13% over the past year, supported by better operating efficiency and cost control. Analysts expect 42.19% annual EPS growth in the future.
• Profitability Improvements: Operating margin (9.53%) and ROIC (9.46%) now exceed 70% of peers in Ground Transportation, according to ChartMill’s Fundamental Report.

While valuation multiples (e.g., P/E of 30.99) seem high, the PEG ratio of 0.74 (based on forward earnings) suggests growth may not be fully reflected in the price. This matches the growth-investing idea of favoring companies with growing market share (UBER leads U.S. ride-hailing with ~70% share) and large addressable markets (global mobility/logistics TAM estimated at ~$10 trillion).

Technical Setup: Consolidation Before Breakout?

UBER’s technical rating of 7/10 from ChartMill’s Technical Analysis highlights:

• Long-Term Uptrend Holding: The stock remains above rising 50-day ($89.27) and 200-day SMAs ($77.32), with a 12-month return of +30.67% (beating 78% of stocks).
• Recent Consolidation: A 4-week range between $85.42 and $95.48 has helped ease overbought conditions. A "Pocket Pivot" signal (volume-driven accumulation) on July 15 points to institutional interest.
• Low-Resistance Path: With little selling pressure above $95.48, a breakout could aim for the 52-week high of $97.72 and higher. Key support sits at $86.91–$89.27 (where SMA50 and trendlines meet).

Why This Combination Matters

Growth stocks with solid technical setups often see a positive cycle: better fundamentals attract buyers, pushing prices higher, which then draws more attention. UBER illustrates this:

1. Fundamental Catalyst: Freight and Delivery segments now make up 40% of revenue, adding diversity beyond ride-hailing and boosting margins.
2. Technical Confirmation: The stock’s ability to stay near all-time highs despite market swings shows underlying strength.

Finding More Opportunities

For investors looking for similar growth/technical combinations, ChartMill’s Strong Growth Stocks with Good Technical Setup Ratings screen offers a selected list of stocks meeting these criteria.

Disclaimer: This analysis is not investment advice. Always conduct your own research and consider risk tolerance before trading. Past performance does not guarantee future results.